IPCA Laboratories Limited (IPCALAB) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the IPCA Laboratories Q1FY27 Onyx Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star than zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Nitin Agarwal from DanCapital. Thank you, and over to you, sir.

Hi, thank you. Hi, good afternoon, everyone, and a very warm welcome to Ipka Labs Q1F27 earnings call, hosted by DanCapital Advisors Limited. On the call today, we have representing Ipka Labs Management, Mr. E.K. Jain, Managing Director, and Mr. Harish Kramat, Corporate Council and Company Secretary. I will hand out the call to Mr. Jain to make opening comments, and then we'll open the floor for questions. Please go ahead, sir.

Thank you, Nitin, and DEM Capital for organizing this call. Today's hearing call and discussion and answer given may include some forward-looking statement based on our current business expectations. This must be viewed in conjunction with risk that pharmaceutical business faces. Our actual future financial performance may differ from what is... Projected and perceived, you might use your own judgment on information given during the call. Our domestic formulation business for Q1FI-27 has delivered growth of 13% to around 1082 crores, as against 961 crores in Q1FI-26. May June 26th, Ipqaz rank remain continuously around. As per IQVR, market share has largely improved to around 2.08% as against 2.07% in March 26. Top six brands of IPCA continue to feature in the top 300 brands of the country. And both on chronic and acute segments, IPCA has outperformed the IPM. Our chronic segment growth is around 17.2% and acute growth is around 8.9%. And overall, IQI has tracked our growth at around 11.7%. Overall export business has delivered growth of around 34% for Q1 FI 27 to around 603 crore from 450 crore in Q1 FI 26. Promotional branded markets of ROW markets has delivered growth of around 16% to 143 crore from 124 crore in first quarter last financial year. Generic business excluding tender businesses delivered growth of around 27% for Q1 27 to around 340 crores as against 268 crores in Q1 26. Institutional generic businesses delivered growth of around 107% to around 111.75 crores from 58 crores in Q1 FI 26. Approximately 40 crore worth of shipment, which was to go in March, was shipped in April, and therefore, institutional business has shown exceptional growth in this particular quarter. API business of Q1 FY26 has delivered growth of almost around 30% to around 424 crore, as against 362 crore in FY26. So, almost all businesses have delivered good growth for the company for the first quarter of the current financial year. On consolidation basis, if you see, the overall business has grown to around 21% to 2,788 crore from 2,309 crore in FY26. For Q1 FY27, we have seen a lot of uncertainties, significant fluctuations in material prices, shipment delays, non-availability of containers, and significant increase in logistic cost. Which is further going up in the month of July to August, and some of the destination sites like South America and all, very difficult to get the containers and ships. Overall, despite all these factors, we could deliver the better profitability. Overall, consolidated EBITDA margins has improved to 22.88% for Q1FI27 from 18.39%. For Q1 FY26, that's an improvement of almost around 4.49%, and from absolute amount is around 638 crore is against 425 crore in last financial year, an increase of almost around 50%. And stand-alone EBITDA margins for EBCA has improved to 26% in Q1 FI 27 to around 23.82% from 2 rupees around 557 crores from 416 crores in last financial year, an improvement of almost around 34%. Having given the broad numbers, now I will request participants to ask questions.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use answers while asking questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles.

Participants who wishes to ask a question may press star and 1 now. Participants who wish to ask a question may press star and one on their touchtone telephone.

The first question is from the line of Rashmi Chetty from Dawgat Capital. Please proceed.

Yeah, thanks for the opportunity. Just on the India part, in the acute segment, we have underperformed the market. So, what are the reasons for it? And, you know, how we are doing overall in the India business, both in the chronic as well as in the acute segment? And what is the outlook for India business for FI24?

Both on chronic and acute, we have outperformed the market. It's not that we have underperformed on acute. The market IPM growth was at 5.5% and IQ growth was at 8.9%. But by and large, in this market, I think our anti-malarial segment has declined by almost around 24%. This quarter, and that's one of them that our performance is not that great compared to the overall, because there was malaria in this particular period. And chronic is concerned or the track by IQ was around 17.2 percent, and chronic growth was almost around 50, the market growth was around 15.2 percent. As far as the overall business growths are concerned, let's say, our internal growth, our pain management business, which includes rheumatoid arthritis and osteoarthritis, both put together, has grown by around 13% for the quarter. Cardiovascular and anti-diabetic segment has grown by around 17%. As I talked earlier, malaria has declined by almost around 24% in this quarter. And now, malaria business is becoming almost insignificant. It is just hardly 1% of our overall business. Antibacterials has delivered growth of 1%. CN has delivered a growth of almost around 19%. Our cough and cold segment has delivered growth of around 9%. Dermatology has delivered growth of, derma business has delivered growth of almost around 17%. Urology business has delivered growth of almost around 25%. Ophthalmology around 17%. And overall growth of business is almost around 13%. And overall outlook is also looking better because market growth itself has started moving up and what we are seeing the trend that the chronic business growth in the market is very good. And we are also delivering line growth in terms of in line with markets now.

So, the guidance which you have given earlier of 12% to 13% will remain for this year, right? Okay. And, sir, in terms of institutional business, what kind of normalized growth should we see in the subsequent quarters, or is it best if you can give for the entire year only, and where the pickup is happening, basically?

Let's say, as I said, in this quarter, the growth has been significant. It's only because of 40 crores worth of shipment, which was to go in March. They were shipped in April because of shipping delays and all those. They are all nominated shipments, and it is not in our hand to, we just deliver the goods to the, notify that goods are available to the nominee of the buyer, and they pick up the goods depending on the availability of shipment, and what happens sometimes is, By the time they book the ship and they take the permission to ship the freight rate and all that, the ship has gone or the rate has gone up. So again, he has to do start and then delivery becomes later. Because of that reason, the shipments were delayed and therefore there is exceptional growth. In institutional business, we don't look for a very high growth. It will remain in single digit kind of growth. And overall business may be around 260 to 300 crores. That's the range it will be. We are not looking for a very high growth from institutions in time to come.

Prashni, mom, you can continue with your question.

Yeah, just one last question, if I may. On the general segment, you know, we have seen a pretty good growth. Earlier, we were facing some supply issues in the UK business. Whether all those things have been resolved now, and therefore, we are seeing a good growth pick up. Are we seeing any traction in other geographies? If you can elaborate on that, what will be the outlook for the whole year for this piece as well as for the branded gender business?

Overall, if you look at business, broad-based, all the market has given good growth. If you look at European business overall, that has delivered almost around 70%. EU is the main growth driver. Almost business has become from 33 crore to 137 crore. So, that's a significant growth that has come from the EU. US has given around, the house spent to US is around 8% up. Canada, there is some minor decline is there. And overall, let's say the generic business is almost around, excluding institutions is around 268 crore, so it became around 370 crore for IPCA as a whole. And overall growth because of institutions and other European high growth in Europe, overall business growth was very high.

So are we going to upgrade our guidance for generic business for FY27?

Overall, let's say in the beginning of the year, we have given the business growth guidelines that we should, overall business will grow around 12 to 13 percent. But now, looking at the... The upside what we are getting from the overall generic business, India business performing very well, even the API business is giving good growth. So overall growth percentage from 12 to 13 may become almost around 14 to 16% overall with the whole of the current financial year.

Okay, and this 14 to 16% will be mainly driven from your upgrading in some part of the guidance in branded market, generic market, and any update on your Unicam that is also performing very well in terms of the margin also and in terms of a strong growth on revenue front. You know, where do we stand there and what kind of growth and margin guidance do we give now?

Hey, overall for Unicam, I think if you look at the first quarter, U.S. business has given growth of almost around 27%. That is largely, I think, Unicam portfolio per se has grown by around 9%. It is Vidka portfolio which they are selling for us in U.S. That portfolio has grown very well and that's the reason it delivered almost around 27%. Perseg, their Unicam's own portfolio has delivered growth of almost around 9%. Okay. Then, their Euro portfolio has delivered growth of almost around 3%. Brazil has given good growth, and Brazil's traction is also improving. So, they have grown by almost around 52% in this quarter, and they will continue to do well in Brazil. Acacia business, which is there, or ROW market business, that has also become almost around double in the quarter from 8 crore to 17 crore. So overall, the API business of Unicam has also started now moving up. From 33-34 crore to almost around 58 crore, so almost around 73% kind of overall improvement in that business. So overall Unicam has also done well in terms of overall growth.

And the guidance of 10% growth in the Unicam portfolio and 13% EBITDA margin which you had given last quarter, that remain intact, right?

Unicam guidance, I am not revising right now. Let's see for some more quarters how it performs. We are working hard to deliver more growth, but let us see on ground and thereafter we will revise the guide.

Okay, okay. Thank you so much, sir, from my side.

Thank you. The next question is from the line of Kunal from Access Capital. Please proceed.

Hi, good afternoon. Thanks for the opportunity. Sir, firstly on the U.S. business, if you mind giving us some color on what we can expect for the next one to two years, maybe some sense of the number of launches, both from IPCA's table as well as from Unicam. And also you had talked of in the past that, you know, some of Unicam's products, you're going to change the API source to IPCA. So some more color in the U.S. business would be very helpful, sir.

I'd say normal IPCA launches will be almost around 3 to 4 products and Unicam will also launch similar kind of products. So almost in a year, I think there will be around 7 to 8 kind of launches, both IPCA and Unicam put together will be there. And some of the product approvals are already received for source changes, some products are still in pipeline. So, that journey is going on. They are also working very hard on, let's say, cost reductions on API, and those are also filed with FDA, and somewhere it's on CB30, and somewhere it's on the past basis, so it may take some more time to get those kind of workflows, but that journey is going on, yeah.

But on your base, then, would it be kind of, can you expect that 20-30% kind of a consistent growth for the next few years?

It's maybe around 15, 16, 17% kind of growth is possible, but currently looking at portfolio and other things.

Sure, sir, sure. Sir, one more question, sir. You mentioned about material costs going up significantly. So, maybe if you can just quantify a bit on the kind of gross margin impact that one can expect in the coming quarters. And is this, I mean, fluctuating or is it going up unidirectionally or some more colors, sir, would be helpful.

Going up, then came little down, then again little because of petroleum prices going up, somewhere supply chain disturbances, some product going down, somewhere going up. Overall, if you look at last financial year, let's say we have grown in terms of turnover, but it caused overall, let's say, battle cost to sales was down by around 2%. This quarter, when you look at, they have grown by around 21% and my material cost has also grown up by 21%. So overall, let's say we have improved the EBITDA margin by almost around 2.4%, but largely it has not come from overall, let's say, material cost, savings on material cost. It is just, savings on material cost is just 0.14%. Largely the EBITDA improvement has come, because turnover has moved up, so personal cost to sales has gone down by almost around 1.41%, and overall manufacturing cost. Two sales overall to the revenue has gone down by almost 0.91%. And on consolidation basis, if you look at material cost is down by almost around 1.35%. Personal cost is down by almost around 1.95%. And manufacturing and other cost is down by around 1.19%. So, overall, let's say EBITDA has improved on consolidation basis almost around 4.49% for the quarter.

But, sir, my question is more like going forward because you said in July, August, prices are going up again. So, do you foresee the margin pressures in the rest of the quarters?

No, no, no margin pressure. I would see that your sales, compared to sales growth, material cost will little come down.

Okay, that is good to know. And sir, any other cost, you also mentioned shipping and container and logistics costs. So all that is baked in your guidance, sir, right?

Yeah, we have taken that into account, but you say freight rate somewhere has gone up by three times. Like say South American markets from... I think the containers, the freight was almost around 3,000, it is almost around 9,000 to 10,000, and that too availability is difficult. As far as U.S. refer containers were available at around 7,000 to 7,500. Now it is almost 12,500 to 13,000. Even European containers, which was 3,000, now it's almost around 5,500. So, everywhere rates are moving up.

Got it.

And we have taken that into account, yeah.

Got it, sir. And just one more question, if I cancel the India business, can you share a salesforce plan and what are the expansion plans?

We are almost around 7,000 people, medical reps around and... Expansion plan is already completed, so that 7,000 includes that. I think in the mid of the year, we may include another, almost around 200 people more on some of the new divisions which we will be launching in the current year. But that will not increase significantly in the number, just like around 200.

Got it, sir. Got it. Very helpful, sir. Thank you and all the best.

Thank you. The next question is from the line of Mohit from Oculus Capital. Please proceed.

Mr. Mohit.

Hello.

Yes, sir.

Yeah. Sir, my question is regarding your associate company, Leica Labs. We invested in this company in FI 2022 and then invested through primary route also till FI 25. Now, this company's revenue has not grown and even the EBITDA has become negative. So, any plans to revive this company? What is happening there in the lethalized injection? What are we doing there?

Let's say they are building up three different kinds of businesses. One is for animal health business. They have a lot of injectables which goes in animal health. They have done good work in terms of building that business. Second, they have started the critical care business in terms of directly selling to the hospitals and all. Earlier there, most of the business was coming on from P2P supplies to the other pharma companies. That business is coming down and their own promoted business is now moving up. So that is the second business. And third, they have a lot of products relating to IVF. So, that part has also started doing well, and they were added almost around significant number of field force in the last two years, and that is they are incurring the cost. Some of these are around break-even, and some of these divisions are still below break-even. And therefore, that cost is also a part of their overall service. So, overall, I think we are hopeful that Laika will do well in time to come. They are on the right path.

Okay, so just one suggestion. At the time of the results, if you guys can give some press release mentioning what is happening there, because it is very difficult to find out what that company is doing. That is also a listed company. So if a press release can be given with the updates, what is happening there, that will be very helpful. Thank you, sir. All the best.

I think this year they have given the press release, I think.

Okay, I could not see that. Okay, thank you.

Thank you. The next question is from the line of Shilpa from Lotus Wells. Please proceed.

Hello. My question is in regards with Unicam. Sir, are gross margin improvements are due to e-depreciation driving realization or supply of API from IPCA has started?

Supply to Unicam is hardly any because I think One product they have given the order now, because that's a source change has approved, so there is no. One is their overall cost reductions has been good as far as their own captive production of API. So that has also resulted in overall some margin improvement there. And also their European business is doing well. That business improvement overall in the margins and Brazil which were incurring losses now is coming positive and that business is also expected to improve well. So these are the things which are resulting in the better overall margins. And as they start, they have whole program of filing the new products in all these markets like Europe. Australia, New Zealand, Canada, Chile, and all those. I think these all, when these registrations start coming in, the business profile of this company will also change. Because currently, it's mostly the U.S. and the market where the margins are always under pressure. So, these markets, once the product mix, the overall market mix improves, the profitability of Unicam will also improve.

Okay, so also in this quarter, a rupee depreciation impact is not as such, right?

Rupee depreciation is also there. If you look at overall turnover, let's say it's out of, let's say, 21% growth, 5% increases only on account of rupee depreciation. Because dollar has almost gone up by almost around 11% compared to last year's first quarter, but that is also resulted simultaneously that our material cost has also moved up. But that has helped in our role in the overall market. But material cost has also moved up because there's a lot of your contents are also in dollar terms and those cost has also moved up. But that is only for that 25%, because material cost to sales is almost around 25%, so on 25% of that cost, your depreciation cost has gone, but rest has come in terms of margin. Okay, sir. Thank you.

Thank you. Before we take the next question, we would like to remind participants that you may press star and want to ask a question. The next question is from the line of Dashaar from Moti Raal Oswa. Please proceed.

Thanks for the opportunity. Sir, I need the Abhita magic guidance if you have shown for effect only seven, firstly.

Mr. At the beginning of the year, we gave the EBITDA margin guidelines of around 22% on consolidated basis. I think because of better performance, overall EBITDA margins may remain around 23%. So, I am improving the guidelines by 1% here.

Okay. So, secondly, while the raw material fluctuations are there, but the rupee depreciation should be able to offset any fluctuation in your raw material prices. In fact, is it safe to assume that rupee depreciation benefit is much more than the promoter price situation and hence it should result in better gross margin?

Let's say material cost to sales is 25%. So out of that also there are a lot of your Indian ingredients and other ingredients which are imported. There are a lot of other costs which is also related to your dollar terms. Let's say freights are in dollar terms, your lot of testing materials and lot of those things are in dollar terms. There are a lot of machine parts which are of imported machines and testing equipments and all are also relating to dollar terms. So their maintenance contracts and other things are also linked that way. We have huge amount of field force in international markets. So their salaries are also going in dollar terms. Because of promotional markets and all kinds of things. So, it's not only that only materials are impacted, it's other things are also getting impacted. We have, for promotional markets, we are running a lot of non-trading offices in various international markets. The cost of that is also going off because of dollar. So, it's overall, but yes, the... In spite of, let's say, the increase in the cost and all, overall, because of depreciation, it is to the extent of your margins and some of the Indian cost. That cost is not moving up, and therefore, you see that there is a significant improvement in your overall manufacturing and other expenses.

Got it.

The sales has moved up, but that cost has come down.

Got it. And so what is driving growth in Europe segment itself? Is it new product launches? Is it market share gain?

There are new product launches are also there, but both European, UK and European business both have done very well.

And has the funnel from Unicam's portfolio started reflecting in the euro business for IPCA? No, no. When do we think that can, that would start happening?

It will take some time because they have started filing in those markets. We have yet to get the approvals and it takes almost around one and a half year after the filing for approvals to come. But yes, there is a significant amount of programs for filing in the various markets. So once the approvals start coming in, the margin profile for Unicam will also start changing.

Understood, sir. And lastly, when do we intend to start new filings for U.S. market, apart from product transfers?

No, we are already doing that. I think four to five filings will happen every year for IPCA.

Got it. Got it. Thanks a lot. Thank you so much.

Thank you. The next question is on the line of Karthik Bane from Vajaj Life. Please proceed.

Thank you for the opportunity. With the Indian Field Force expansion, Largely complete, and the profitability is also improving. Would incremental cash flows be deployed towards acquisition or any capacity expansion or would focus more on filings and launches?

The capacity expansion will also be needed, and that's going on right now, because we need a lot of capacity for European markets and US markets. Right now, we are building up capacities for all these control releases and all the extended releases kind of formulations that are coming for traditional capexes are going on. Biotic is one area where also capexes are going on in terms of. Further increasing R&D investments, R&D assets, and plant level also those kind of capabilities are there. On the API side also, we are building up new plants because we are running out of capacities at Ratlam, so new plants are built up at Devas site and also at Varda for intermediates and all. And some of the investments are also going on for... Converting the existing intermediates into more for continuous process kind of processes. Those investments are also there. So, largely, I think, almost around 700 to 800 crores in current year will go in the capex side itself.

Thank you.

Thank you.

The next question is from the line of Aditya Cheda from Ingrid Asset Management. Please proceed.

Hi, this is Pooja Sanghi. Thank you for the opportunity. So we understand that the prices were contracted earlier, and now the rupee has depreciated. So your realizations would have gone up in rupee terms. But as per my understanding of the past, so whenever this kind of thing happens, the dollar prices again get renegotiated lower. So if that were to happen, so how long do you feel that the currency benefit and the higher gross margin will be reflected in our statements like another two quarters or another year?

I think there are no such renegotiations of the prices where the prices are to be reduced. Rather, we are increasing the prices everywhere because your costs are also moving up. All other costs are also moving up. So there are no reductions and prices are by and large increasing only, not going down.

Okay. Okay. Thanks, sir.

Thank you. Participants who wishes to ask a question, please press start and run now. Participants who wishes to ask questions, please rest on one now. The next question is a follow-up question from

the line of Karthik Banis from Bajaj Life. Please proceed.

Hello. Thank you for the opportunity again. Could I get a split between the domestic growth as price, volume, and the new product launches?

Overall, I think volume growth is almost around 5%. Price growth is almost around another... Another, I think, 4.5 to 5 percent, and new product launches maybe around 2 percent or so. So overall growth is around 13 percent.

Thank you.

Compared to industry, our volume growth is higher.

Thank you. The next question is from the Lion R. Rashmi Shetty from Lawless Capital. Please proceed.

Yeah, thanks for the opportunity again. Just one book-ripping question. This quarter, we have seen a... We have seen a decline in the interest cost, quarter-on-quarter. If you can just give some thoughts on the total gross debt number and whether we have done any repayments or anything?

Last financial year, we had almost around close to $50 million as a dollar loan, which were completely repaying before March itself. In fact, before this dollar depreciation started, we have... Almost repaid every dollar loan, prepaid every dollar loan. We don't have those kind of debt in books. Currently, the debt may be around 193 crores in books. That's a long-term debt. We don't have zero working capital debt. And I think by this year end, what we only have is 70 crores of your thumb loan debt outstanding year that will be repaid completely in the next financial year. Practically, and we have more cash in books compared to the overall loans. Loans are hardly around 193 crore currently.

Out of that 193 crore, you are saying you will be making a repayment of 70 crore also?

No, at the year end, 70 crore will be balanced because that loan is at much cheaper rate than current market rates. So, I earn more in mutual fund rather than, so why should I pay? I will pay on due date.

Okay, okay. And we don't have any short-term borrowings?

Zero, yeah.

Okay. So, interest cost is expected to decline in the subsequent quarters also, right?

Yeah, interest cost will be hardly any. We will be earning more than declining.

Okay. Yeah. Understood, sir. Thank you. That's it for myself.

Thank you.

Thank you. The next question is on the line of Ankit Panda from Baroda BNP. Please proceed.

Yeah, hi. Thanks for the opportunity. So, just one question. Can you give some guidance on FI28 numbers in terms of the top-line growth and EBITDA margin?

So, I think for the current financial year, we have already given the guidelines that are revised guidelines is around 14% to 16% kind of growth. We have revised it from 12% to 13% earlier. And EBITDA margin consolidated from 22% to 23%. We have revised upward by 1% here.

So, I am asking for FI 28.

So, 28 guidelines we will give at the time of quarter 4, yeah.

Okay, that's it for me. Thank you.

Thank you. Participants who wish to ask a question, please press start and run now. Participants who wish to ask a question, please press start and run now. The next question is from the line of Siyan Mukherjee from Namora. Please proceed.

Yes, good evening. Thanks for taking my question. Just one question on EBITDA margin for your consolidated business and for Unicam. If you sort of bake in all the impact of Unicam synergies. Playing out over the next, say, three years or so, and business scaling up in U.S. and other markets, and India growing, where do you see EBITDA margin settling from a slightly medium to longer term perspective for both Unicam and ITCA as a whole?

If we income margin, which is maybe around the 26%. Could go up to almost around 30% kind of margin as possible. And overall EBITDA margins may be 2-3 years down the line, maybe around 25-26% overall for consolidated basis because most of the, by that time, all these other subsidies companies will also start doing very well.

Right. So, in terms of key investments, what are those investments or new initiatives, let's say, which IFCA is planning to undertake over the next two, three years, if there are any plans or thought of inorganic, organic moves, some big investment plans?

So, right now our investment is by and large. More is happening in biotech side. We have around almost around now seven candidates in pipeline. We are working on more number of now. So, R&D has capacity to work on at least around three to four products now every year. So, and I think two products now we have already taken the... These engineering batches and results are absolutely in line with what we were expecting, and I think validations are going on, and a lot of investment will happen in terms of clinical trials of all these biosimilars, and we are targeting all global markets, and most of the products are known tighter values are practically double or more of the current known in the market side. So, we expect to do well, and there will be good amount of investment further will be happening in biotech. Current year, also, we will be investing almost around 100 crore more on building up the piloting facilities and additional R&D investment in biotech. So, a lot of those investments are happening now. And maybe, I think, in one or two years' time, we may need to further increase our capacities what we have built up on biotech. So, that will be another additional investment.

The EBITDA guidance or EBITDA expectation that you have, you are factoring in these clinical trials and these investments on biotech products?

Yes, that we are factoring. So, because next two years, no revenue will come. Because by the time clinical trial completes, all those we are factoring in.

Right. And so is it possible to give some color on these products? So, I mean, it seems that you're mentioning that, you know, your needs are much better than what's available in the market today. So these seven biosimilars and two of them, which are probably a little advanced, are these old products or are these like products which will go off patent? And you will be there in the first wave in the market. And if you will give some color and some idea about, you know, what kind of products are you working on?

By and large, these are old products, but there is one product which is maybe that we are targeting around patent expiry itself. And that is very large product. But mostly the other products are all patent expired products.

Right. And so, you think in two years, we will start to see, that means FY29, FY30 revenues will start to flow from biosimilars?

Yeah, because first we have to produce the API, then formulations, validate formulations, do the stability, then go for clinical trials. So, that process is all going on simultaneously.

Okay, and these are like global trials, so you will sort of file in US, Europe, and out of the market for all?

Yeah, put together. These are global trials, yeah. We already consulted European authorities, UK, then also US for all the clinical trials protocols and all. So all protocols are in line with all these regulatory agencies, yeah.

And so, therefore, the filing will happen, like, next year, is it? Like, if you have to launch in fiscal 30, in fiscal 28, you will be making your first filing. Will that be your right assessment?

I think this year, practically, your first is the validations of those products will happen. And thereafter, formulations, the development and stability charging will happen in this year. Somewhere, I think, mid of next year, the initial stability results will come, and thereafter, By the time, we have already taken those kind of approvals, so we will start the clinical work, and now clinical work is significantly reduced. We have also the waiver of phase 3 from European authorities and also from US, so it's only the initial work needs to be done. The cost has also come down significantly now. Because RLD is not required for pastry, because RLD cost becomes very high. So those exemptions have already come, looking into biosimilarities and other parameters and results, what we have submitted to the various regulatory agencies. So overall, I think clinical things will start happening from the next financial year.

Right. Okay. Thank you.

Thank you. Yeah.

Thank you. That was the last question for today. I now have the conference over to the management for the closing comments. Over to you, sir.

Yeah, thank you. Thank you very much, all the participants. Thank you. We can close this call, madam.

Yes, sir. On behalf of Dam Capital, that concludes this conference. Thank you for joining us, and you may now disconnect your line.

Yeah, thank you.