Marksans Pharma Limited (MARKSANS) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Marksons Pharma Ltd. Q4 FY26 Earnings

Conference Call, hosted by DamCapital. 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 this conference, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Nitin Agarwal from Dam Capital. Thank you, and over to you, sir.

Thank you, everyone. Hi, good afternoon, everyone, and a very warm welcome to Marks and Sama's Q4F26 Post Results Earnings Call, hosted by Dam Capital Advisors Limited. On the call today, we have representing Marks and Sama Management, Mr. Mark Saldana, founder, chairman, and managing director, and Mr. Jitendra Sharma, chief financial officer. I will hand over the call to Mark to make the opening comments, and then we'll open the floor for questions. Please go ahead, sir.

Thank you, Nathan. Welcome, everyone, and thank you for joining us for our Q4 and FY26 earning conference call. We sincerely appreciate your interest and continued support for the company. Over the last several years, we have been consciously building a diversified global healthcare company with multiple growth drivers across regulated markets. FI26 marks an important milestone in that journey. During the year, we crossed 3,000 crores in net income for the first time and delivered our highest ever profitability. More importantly, we strengthened the quality of business through geographical diversification, portfolio expansion, improved margin, and strong cash generation. We expanded our international footprint through new market entries in Germany, Canada, Ireland, while also strengthening our presence in Australia through our entry into branded prescription generics. Talking about regional growth, starting with North America, this remains our largest and fastest growing market. Revenue for FY26 reached 1,533 crores, reflecting a growth of 24% year-on-year. Over the last four years, the revenue in this market has increased from 635 crores to 1,533 crores. Demonstrating the scalability of our operating model and the strength of our customer relationship. During the year, we launched 112 SKUs and currently have 51 additional products in the pipeline. In UK, the business saw a clear recovery of trajectory during the second half of the year. While FI26 revenue were marginally impacted by pricing pressure during the early part of the year, however, the Q4 performance was encouraging, with revenue reaching an all-time quarterly high of 308 crores, representing a growth of 12.3% year-on-year. We currently have 18 product approvals. New product approves, 30 products under review, 24 products awaiting approves. Our next four years, we intend to file over 200 products in the UK market, increasing and creating a strong medium-term visibility. Europe represents the next important phase of our growth strategy. Australia was another important highlight during the year. Our Q4 revenue reached 123 crores, reflecting a strong growth, both sequentially and on a year-on-year basis. More importantly, through NOVA Pharma, we have entered the prescription segment for the first time and launched 11 branded generic products. Having built deep OTC capabilities over the last two decades, this expansion meaningfully increases our addressable opportunities in the Australian market and creates an additional long-term growth driver for the business. Coming to profitability, FI26 saw a strong improvement across all key operating metrics. Gross margin improved to 56.7% while EBITDA margin expanded to 20.4%. The Q4 margin was particularly strong at 22.8%. This improvement was driven by better product mix, operating leverage, Softened raw material costs during the second half and continued focus on execution efficiencies across the market. At the same time, we remain mindful of the near-term external headwinds. We expect, obviously, some inflammatory pressure on raw materials costs during Q1 FI27 due to the ongoing geopolitical and supply chain development. A balance sheet continues to remain a significant strength for the company. We closed FI26 with a cash and cash equivalent of approximately 990 crores. This provides us with a substantial flexibility in invest behind future growth opportunities while remaining disciplined capital allocation approach. In line with our commitment to create a long-term shareholder value, the board has recommended a final dividend of 0.90 per equity share, representing a 90% payout on face value for FI26. Overall, we believe the company is entering the next phase of growth from the position of considerable strength. We will continue to build the diversified global company, expand into new regulated markets, strengthen our product pipeline, improve profitability, and maintain a very robust balance sheet. More importantly, we believe in creating a business that is scalable, resilient, and positioned to deliver sustainable long-term value for all our stakeholders. With this, I hand it over to Jitendra.

In Q4 of FI26, our operating revenue stood at Rs. 856 crores, an increase of 20.8% year-on-year, compared to Rs. 708 crores in the same quarter last year. Revenue from the U.S. and North America market stood at Rs. 406 crores, an increase of 23.6% on a value-wide basis, reflecting sustained demand momentum and strong execution in the U.S. market. UK and EU formulation business recorded revenue of Rs 308 crores. Thank you. Cost profit for the quarter grew by 21.5% year-on-year to Rs.465 crore with a gross margin of 54.4% and expansion of 27 bits on a YOY basis. We recorded EBITDA of Rs.195 crore in Q4 of FY26, up 54% on a YOY basis. EBITDA margin expanded by 491 basis points. Profit after tax to that Rs 149 crore, an increase of 64.3% on a value-wide basis. EPS for the quarter was Rs 3. The U.S. and North America market recorded revenue of 1,533 crores, up by 24% on a YOR basis, and contributed 52% of our total operating revenue. U.K. and EU market revenue stood at Rs. 1,015 crores, contributing 34.4% of the revenue. Australia and New Zealand market recorded revenue of 303 crores. The rest of the world market recorded revenue of Rs. 99 crores. Contribution from these two markets stood at 10.3 and 3.0. The gross profit was at Rs. 1,674 crores, up 13.2% on a IOI basis. Gross margin expanded 32 basis points on a IOI and stood at 56.7%. EBITDA for the period was Rs. 601 crores, with the EBITDA margin at 24.4%. Profit after tax was at Rs. 420 crores. EPS for FY26 was Rs. 9.2. In FY26, Cash Enriced from Opdition Amounted.

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 please use handsets while asking a question. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. Our first question comes from the line of Ahmed Mada with Unify Capital. Please go ahead.

Yeah, thanks for the opportunity. Just to understand your comments on the raw material cost inflation, how should one look at the margins coming through? You spoke about the impact in Q1, but I'm assuming there will be some contractual pass-through with a typical lag or something. If you can elaborate a bit, how should one think about the price likes and gross margins in near term?

Yeah, so we are witnessing, obviously, raw materials which directly or indirectly have petroleum related. We are seeing a price escalation of over 20-30% of these raw materials. That said and done, we are presently having inventory of a decent amount of inventory of raw materials and everything. But obviously, our hope is that this war comes to an end as soon as possible. And it's not only us, it's, I guess, a global wish list for everyone. Everyone's hoping for the same thing. But if it does come to an end, then obviously we see a collection of petroleum-related ingredients or products. But today we do see a slightly higher level of raw materials cost, and that's where we, so far we don't, we are not seeing a big impact, but if we do run out of materials, then we would have to buy it. So that, uh, a bit of awareness comes into play out there.

Sure. But on your conversation with your customers, uh, how is that going through? Because that's, I mean, uh, obviously everyone is hoping for the things to settle down, but if not, uh, how will, how will be your, uh, contracts being renegotiated? And secondly, are you seeing, uh, raw material cost inflation in the APIs, paracetamol, ibuprofen, And those sort of APIs or the solvent costs. Where do you see a major problem?

That's always an option open, but because there is no clarity that... And the last thing we need is to press the panic button today because we are sitting on inventory of, you know, a lot of products. So I think everyone's waiting and watching, and if you had asked me 30 days back, I would have said the war will probably come to an end, you know, sometime back, but it is still going on, and every day it's like tomorrow, right? So, but I do believe that everyone's hopeful that it will come to an end. And I don't think it benefits anyone, including the U.S., for continuing what's happening today.

And will it be fair to assume we have inventory through Q1 or Q2 as well?

We have inventory through Q1 to a great extent. Obviously, this is being, you know, while we talk about making prices going up, we are also helped a bit on the Forex part of it. You know? So we do have some cover because obviously the foreign currencies have gone up. So some leverage is there to absorb that cost price.

You know, the logistics, right? Last time, when the Red Sea crisis happened, we had 1-2% margin in time.

But now, it is still around the same, about 2%. But again, you know, this keeps dragging. I don't have a crystal ball. But right now, you know, the logistics per se is very... And if this comes to a stop, it will go back to its... It is creeping up, but nothing to be alarmed off.

Sure. The other question was on the PY unit. How has been the utilization been in Q4? And any comments on the new product launching service?

Yeah, I mean, a new product launch is happening every quarter, but it is getting better, and you can see the results are a reflection of a strategy that we did in Teva. A consolidated number itself is a reflection of the decision that we took to get into. The facility and invest resources, so obviously it is playing out very well as per expectation. We still have a potential of maybe 40 to 50% of growth coming from there. And we are working towards that.

Thank you so much. Welcome back.

Thank you. Our next question is from the line of Maitri Sheth with Choice Institutional Equities. Please go ahead.

Just two questions that I have. One is on the revenue widening. So given the current macro situation, I am still on track to achieve the 4,000 crore revenue by FY28. And second is on the pipeline. What sort of pipeline launches have you planned in North America and Europe for FY27? Thank you.

Yeah, so to give some color and guidance, yeah, I mean, we are, our target is still. We have come up with a roadmap to, you know, double our revenue in the next three to five years. So, yeah, I mean, 4,000 crores within the next two years is very much on the plate right now. And with regards to pipeline, our pipeline keeps growing because obviously it's a never-ending pipeline. We keep developing products because that fuels a bit of our growth. That's a part of our growth strategy. So we've got a healthy pipeline, and we do see 2026-2027 pipeline increasing by, like I mentioned, about 50-odd products in the U.S. And in other geographies, it's much larger than what is there in the U.S. So, we are keeping in tune based on requirements of the market and, you know, finding the niche products into the respective markets so that we can be differentiated at all given times. So, we do have a three to five year horizon. Obviously, whatever we invest today or find today, you'll see results only in end of 27 or early 28 because it takes about a year. About a year or so to get approved.

Okay, thank you so much.

Thank you. Our next question is from the line of Aditya Pal with MSA. Please go ahead.

Hello, am I audible? Yeah, thank you so much for the opportunity. Great set of results. Last time, you had said that 3,000 growth would be missed, but you completely exceeded the guidance. So, congratulations on that. The last part of my question is, but I just wanted to touch upon a couple of years back, we had signed a CMO contract with a domestic API manufacturer. And will that come into play to protect us from... From a gross margin, get affected with the APA prices?

Not to a great extent, because, you know, what's driving the prices up are the intermediates. It is ultimately the intermediates that are driving the prices up. While the prices, so we are keeping a tap of every intermediate also that goes into API, right, so, but obviously we are getting, we have more, more sites on our licenses, so we have the flexibility to play around, but at any given time, at least on that, that raw material, we sit on a good. You know, five to six months of inventory at all given times. So, we are sitting on inventory, which we don't feel may impact us if the war is called off tomorrow.

Understood. Understood. The other part was, you mentioned about currency impact which is benefiting us. Yes, but on the raw material side also, Yuan and other raw materials which are predominantly denominated in either USB or Yuan, they are also strengthening against the INR. So are we facing impact on that? Because it will be a dual thing, right?

Yes, you are right. Import will get a bit more expensive, but the value chain of getting into finished product and shipping it out is always higher than only the actives, and hence... The overall dollar benefit is much better, and it does leverage that increase in raw material price. I mean, it does absorb a decent amount of the raw material price.

Understood, understood. This last question, I'll merge my two questions. So, one is when you were answering to the previous participant on passing on prices. So, what I largely understand that these are fixed, the OTC side of business is largely fixed to your contracts and until where, where, where the. When you don't really invoke a clause, everything comes back to the table, because last time, when the situation happened, you said that if we invoke the force, force measure, then the entire... And the other thing is on the passing on the price, the other thing is on the freights. The freights have also, the prices have closer to two and a half or tripled, what we saw during the Red C. And the Red C crisis had impacted us. So are we seeing that same, the quantum of impact the same or a bit lower?

It is much lower than the Red Sea. It is very lower compared to the Red Sea, if you are taking that as a comparison. Because out here, see, the vessels are moving freely except for the Strait of Homo, right? And those are more oil tankers related and all that stuff. So it is not the containers that are getting, you know, clogged up and everything of that stuff. So I think although the transit time has increased slightly marginally, but vessels are flowing freely from other routes. So the impact on freight, barring the fuel and the fuel cost, is not gone up to that level due to scarcity of containers or stoppage of shipping line.

Understood, understood. And on the OTC contracts?

The OTC contracts, while it is for a longer duration, you're right on that. But historically, if you look at it during COVID times, we went through that and, you know, we were successful in rising our prices without actually triggering of any force major. The problem that we have in this situation right now, we don't, everyone expects, if I go to the buyer, everyone expects a war to end tomorrow, at least as... The President of the United States says, like, you know, the deal is imminent. So that's where the lack of clarity to some extent and hopes that it will end tomorrow is something that no one is panicking or no one believes that this will drag on because I don't think... Anyone can afford it to drag on, no country can afford it to drag on, and everyone globally is impacted by it. So I believe that there will be some outcome, but obviously we always expect it to be the earlier the better. And that's where we don't want to go for something where tomorrow the crude, you know, comes down or prices come down and then the buyer comes to us and says, okay, let's revise your prices or we've got cheaper cost on goods from somewhere else. So nobody, right now, everyone's waiting and watching. And if it does prolong or if it does go into a full blown off war, then obviously we would have to have a different discussion with the buyer. But it is possible to go and re-look into this, because everyone knows this is like a post-measure. It's beyond our control.

Understood. Makes sense. Makes sense. Wishing you on the team all the very best. Thank you so much for answering so patiently.

Thank you.

Thank you. Our next question is from the line of Rajat Ji with Fortune. Please go ahead.

Yeah. Am I audible?

Yes.

Yeah, top-notch results, sir. My query is more with respect to 7 to 8 years long-term. So I think back in Q2, you had mentioned expanding on current land banks to achieve 9,000 to 10,000 crore capacity. So by which FY should we achieve this roughly $1 billion capacity and what should be the approximate cost? Because I'm looking at roadmap for us to reach a billion dollar revenue by FY34.

That's a good outlook. But, see, I mentioned in the previous call that we have a roadmap and a business model to double our revenue in the next three to five years. And we are quite optimistically working towards those objectives. We have different geographies our focus is into. But in terms of infrastructure, we still have spare capacity. And as and when we believe it is the time to expand our capacity through land banks or through acquiring new plants, we are already looking out and we are already planning for that stage. So I think we may be a bit early, but we are still working on that.

Okay, okay, okay. Okay, sir, and just one more question. With this respect to this, do we have any impact because of Trump Rx? Like this TimeCap Labs, does it have any partnership with Amazon Pharmacy?

This Rx is not something new. It's a very old Mark Cuban's Rx. So, there's nothing new out there, and we are not impacted.

Okay, great. That's all for me, sir. All the best for the FI27. Thank you. Thank you.

Thank you. Our next question comes from the line of Weiraj Mahadeva with MoneyGrow Asset. Please go ahead.

Hi, Mark. Congratulations on a good Q4. Can we take Q4 as an exit run rate for FY27, i.e. could you replicate this level of revenues and profits for the full year?

So, Neeraj are basically historic. If you look at our historic trend over the last couple of years, the first quarter is normally always because of seasonalities, right? First quarter is always on the lower side. The second quarter is better than the first quarter. Third quarter is actually a peak, and then the fourth quarter obviously is stronger, but not as strong as the third quarter. But obviously, this time it was a bit different. But it is historically, that's how it goes. Depending on how long the season, the winter season actually prolongs. So that's where the fourth quarter remains. But historically, the first quarter, so we, I've always stressed in all my calls that we cannot... Because of our business model, the weight is we cannot look at it on a quarter-to-quarter basis, but on a year-to-year basis, we definitely are very optimistic of growth and hitting our objectives.

Great. Secondly, sir, can you update on the Teva facility? What is the utilization there? Has it fully ramped up? Is there still a lot of capacity room? Are you adding more lines?

So, we are at very close to 50% of our capacity today. Maybe shying away from the 50%, but very close to that. We still have a huge scope of utilization out there. So, we are optimistic on that. We are planning some capex, but within the facility, because it's huge. But that is to launch different dosage forms or something which is not already there in the plant. So we are working. It's part and parcel of our pipeline products that we need different dosage forms to be launched. So for that, obviously, we need to have machinery or capex involved to ensure that we get those products.

Understood. And on the 990 crores of net cash, any plans to deploy it? Any suitable acquisition candidates? I think we've been on the lookout, you've publicly said, for the better part of the last two years. And if not, any plans to distribute it to shareholders?

Yeah, so basically, obviously, we have declared dividends, but prima facie is the reason we are an active... We have dialogue for two targets, and as a matter of fact, one target we are doing due diligence, the other one has not started yet. So I'm more optimistic that, yeah, in 2027, we'll see some M&A transactions happening, and that's where we've kept the corpus, because... We look at the 990 crores and we feel in terms of absolute pre-value, it is big, but if you look at it from a...

Acquisition, you will need that much, yeah.

Yeah, I mean, you spend $50, $60 million and you wonder where the money is going. Right.

And would these targets be in Europe, US, any particular therapy, manufacturing, front-end licenses? Just a bit of flavor around what these potential targets look like.

So, these targets are a mixed basket. Obviously, we are looking at platforms, we are looking at different geographies. So, my focus is always to diversify in different geographies. That's said and done. If a target does come across in the geography that we are very strong in, we will obviously explore and take it to another level. But for us, we've been always very conservative to make sure that whatever we acquire is value. Basically, return on investment and, you know, creates value for the shareholders. So, we are very conservative in the valuation. We don't go for some high-ticket deals and throw money out. Absolutely.

Fully aware of that, yeah.

But we are looking at it, and we are optimistic that 2027 will see some activity out there.

Great. Thank you. All the very best.

Thank you.

Thank you. Ladies and gentlemen, to ask a question, you may please press star and one. Our next question is from the line of Nishita Sanklesha with Sapphire Capital. Please go ahead.

Thank you for taking my question. I just had two questions. One is that you mentioned that our margins could be impacted due to the RM price inflation we see. So, like for the full year FY27, can we still the EBITDA margins in the same range of 20-21% or do we expect them to be lower?

No, I think it will be the same.

Okay, and if you can give some guidance on the top-line level, can we see the growth of 18-20% or is it what range can we expect the growth to be in?

I mean, conservatively, because I always like to be that way, but between 15-20%.

Thank you so much.

Thank you. Our next question is on the line of Manabh with Fundrise Capital. Please go ahead.

Hi, congratulations for a good set of numbers. My first question would be that you've entered the Europe market organically, so do you still plan to look at any possible opportunities for M&A in the region?

Yeah, you know, we've organically entered into Germany. Europe is a cluster of different countries and different zones, like you have North Europe, you have the Nordics, you have Eastern Europe, so it's a cluster of many countries and many cultures, and many different, each country has its own... Modus of operandi or, you know, the sales that happen. So, yes, we are exploring obviously to expand our footprints and become prominent players in Europe per se, not only in Germany. So, we are looking at different countries within Europe also.

Got it. And, sir, my second question would be, when will we see some revenue contributions from new markets like Germany, Ireland, and Canada?

So, Canada products are under fine, and we should see a small part of it trickle in towards the end of the financial year. But Europe, we are expecting it to be earlier than expected. I mean, within this year, we are expecting maybe second half for it to see some results.

Noted. I'll come back in the queues.

Thank you.

Thank you. Ladies and gentlemen, if you wish to ask questions, you may please press star and one on your touchtone telephones. Our next question comes from the line of Kamal, an individual investor. Please go ahead.

Hello, I'm whatever. Yes. Yeah, thanks, sir, and your team for the HR talk number. My simple question is, what is operational capacity available of 12 to 6 billion units as of now?

Are you asking for the capacity, utilization capacity?

Yeah, right now, we have total capacity of 12 to 6 billion units, and even though 8 billion for Goa, Palant, PC, Teva, Win might be expendable. So, what is right now operational capacity available?

That's slightly below 50% for the Teva plant.

No, no, that's why, let me reset. Out of 36 billion, are we near about 18 billion units per year already available, operation capacity?

Out of 20, yeah, different facilities. You're talking of all three facilities put together?

Yeah, yeah, yeah, yeah.

Yeah, so we are at 13 to 14 billion. Okay, okay, thank you. 50%, you can say, like I said, around 50% to 55%.

Okay, and what about the Orbeamad, which strategically get into the company four years back, and some state they have showed, what is their plan, either their objective has been achieved, or some clue around it, sir.

Well, I can't speak for them, but I think they see the strength of the company, and they are quite happy with the progress and the roadmap that we have in place. So, I can't speak beyond that on the outlook, but I'm sure they are happy with our strategy.

R&D spending is near 3%. What is outlook for next year to five years for R&D spending?

We would like to keep it at that.

Okay, keep it at that. We will continue like that. Last question is, do we have any land bank outside Goa? I think few years back, some news are there. In Nagpur, we have some land bank etc. for new facilities or something. Is it right or it is?

Outside Goa, presently, we don't have anything.

Thank you, sir.

Thank you.

Thank you. Our next question is from the line of Ahmed Mada with Unify Capital. Please go ahead.

Yeah, thanks for the opportunity again. Two questions. Firstly, on Australia geography, leaving out the seasonality in the cup cold season, what sort of growth rate can we sustain with all the new launches we have done? Obviously, Q4 was very strong, but moving forward, What sort of growth rate one can assume, and what sort of scale you can assume.

In the previous call that I mentioned, we have a business model to see us, a roadmap to see us to $100 million. I think we reached halfway mark out here, but I am very optimistic and very confident that within the next three years, we should hit those objectives of hitting our first milestone of $100 million.

And in terms of the new geographies, EU markets and Canada, can you give some sense of what progress you have made in the Canada market? You spoke about the European region in the call earlier.

The Canadian market, a lot of products are under filing right now. So, you know, and we see approvals trickling in somewhere to the latter part of this financial year. And apparently we are creating, it will be an organic setup, but we are creating an organic setup out there, you know, operations, but we still have time to create that because, you know, product approvals are not there, so we don't want to set up to be sitting idle out there. But we do see revenue generation. One has to understand that Canada is relatively a smaller market. Than any of our countries, any of the geographies we are into, but it's a part of our strategy of expanding our footprints into different geographies, and that's where Canada comes into play.

Thank you. Our next question comes from the line of Mihir Damania with the Fident Asset Management Company. Please go ahead.

Yeah, just one question from my side. Considering that we have a decent roadway for growth in New Zealand, around 100 million. My understanding is that we still currently only hold around 60% in the entity, the Australian New Zealand entity. And considering we also had a thousand crores cash in the books, why not just buy the outright 40%? Or is there some constraints to that?

Well, the management is running that, right? So, the other 40% is working hard and growing the company and helping us achieve our objectives. So, we are happy with that.

Do we not have, like, a call option or any restrictions of just increasing the stake, monetizing them?

We don't have that. And, again, you know, I do believe we can grow a lot as partners. So, you know, the management is very... I think so far we are happy with what we see.

Okay. And while currently, let's say, sitting right now closer to 3,000 floors old, we've done a very good job stealing this company into a U.S. and a developed market generic company. But if you look at, after a particular scale, a lot of other companies are moving into, some are moving into CDM or some are moving into biologics, but we are still currently, still focusing on oral solids, painkillers, like generic products. Do you see any merit in diversifying maybe three to five years down the line into other adjacency, or do you think there's still runway for growth at the next three to five years before you kind of pivot to something different?

So every geography, every country, we operate different. So we don't have a thumb rule. If you look at our portfolio in UK, it is more tilted into Rx. Diversified and balanced portfolio. that we are executing as of today. So, we've come to one, we've achieved a great milestone, but we've still got a long way to go.

Okay, great, thank you, and I'll be here.

Thank you. Ladies and gentlemen, to ask a question, you may please press star and one. Our next question comes from the line of Jugal Shah, an individual investor. Please go ahead.

Thank you. Hey, Mark. Congratulations on the great setup number. I've been your investor for the last five to seven years. Last couple of quarters were challenging, so good to see this quarter, and especially the dividend which you have provided, which is, again, very welcome. I have two questions. One, Mark, is on the working capital cycle, I do see that increasing year over year, so just wanted to have an understanding, like, what is the comfort level, and do we see it going down? So, basically, last year we were hit with uncertainties of tariffs. If you look at the whole of the past year, there was a huge amount of uncertainties and it went on. There was a lot of chaos prevailing. So, it was a conscious decision for us to ensure. Before our products, nobody knew what will happen tomorrow, so before our products get into any tariff zone, we decided to go heavy on inventory, both finished product as well as raw materials. So, you know, I mean, it was better safe than sorry, and, you know, our board and everyone we discussed, and we decided let's... Just secure ourselves as much as we could produce or whatever material we could keep on store. Now, if you look at it with respect, this year we have different challenges, and that's related to fuel, but it is helping us in terms of what we did last year. So we have, you know, we are not panicking that the prices are going up because we are sitting on whatever we built last year. So we are depleting some of that inventory that we built. But again, it's difficult to, in an ideal case scenario, we would love to go a bit lighter. But geopolitically, we don't know what comes next. So we have to just keep a track of that and be one step ahead if possible. I'm least concerned about the working cycle today because, you know, we are – it is basically helping us out in what we are doing today. Okay. Good to know. Thanks, Mark. The last question which I have, Mark, is from now onwards to the next two to three years, whatever guidance you are given? Where would you see the highest amount of revenue in terms of percentage, if you could just give a broader idea in terms of a pie, like if that's to you, Australia, New Zealand? So I do see, I do see eventually if you look at three to five years, obviously US will be a growth driver always, but at the same time I would put a lot of stress, I would put a lot of weightage on Europe. Our UK is also growing nicely, and obviously, I've already given a guidance for Australia, so I'm quite confident on Australia part of it. So, all our geographies will grow, but the new geographies that come into play will be Europe, and we're working hard to ensure that will be within one of our allied subsidiaries, which are doing decent milestones out there. Is it safe to assume the pricing power would be higher in the U.S. compared to other geographies? Pricing power? I mean, sorry, in terms of margin.

In terms of margin.

In terms of margin, obviously, U.S. is highly, very competitive. So it won't be, it's a huge market, so a lot of pricing pressure comes out there. But I do believe Europe is relatively better, and then again, UK is also doing fantastically well, depending on the product-basket mix that we offer. So, it's quite evenly distributed from all angles.

Okay.

Thank you, Mark. Once again, congratulations, and good luck for the entirety. Thank you.

Thank you. We have no further questions, ladies and gentlemen. I would now like to hand the conference over to the management for closing comments. Over to you, sir.

Thank you, everyone, for the continued support and interest, and please be safe and take care and have a great evening. Thank you.

Thank you. On behalf of DAM Capital Advisors Limited, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.