Natco Pharma Limited (NATCOPHARM) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to the Nodco Farmers Q1A 597 ONI conference call. As a reminder, all participants will live in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should we need assistance with a conference call, please signal an operator by pressing star 10-0 on your touch-tone phone. Ladies and gentlemen, a reminder that this call is hosted by 361 Capital Market Private Limited. I now hand the conference over to Mr. Rishikesh Patroni from 361 Capital Market, Private Limited. Thank you, and over to you, sir, Rishikesh.

Thank you, Dhanesh. Good evening, everyone. On behalf of 361, I welcome you all to the Q1 FY27 earnings conference call of NETCO Pharma. Hope everyone is in good health and doing well. On behalf of NETCO today, we have with us Mr. Rajiv Nala Panini, Vice Chairman and CEO. Mr. Ameet Parekh, Chief Financial Officer. Mr. Rajesh Chabiam, Executive Vice President, Crop Health Sciences. And Mr. Rajiv Minam, Investor Relations. And now, I'll hand out the call to Rajiv Minam for the opening remarks, post which will open the session for Q&A. Over to you, Rajiv.

Thank you, Rishikesh. Good evening and welcome, everyone, to the NADCO's conference call, discussing our earnings results for the first quarter of FY27. We hope you have received the press release that was sent out earlier. It is also available on our website. Let me draw your attention to the fact that on this call we may be making certain forward-looking statements which are not necessarily historical facts, and anything said on this call which reflects our outlook for the future must be reviewed in conjunction with the risk that the company faces. We undertake no obligations to update these forward-looking statements. I would like to state that the material of the call except for the participant questions is the property of NatCo and cannot be recorded or rebroadcast without NatCo's expert's written permission. We'll begin with the financial highlights and then follow up with an interactive Q&A session. With that, I will request our CFO, Amit Pare, to discuss the financial highlights. Over to you, sir. Thank you, Benham.

Greetings to everyone, and thank you once again for joining NACCOR's quarter 1 FY27 earnings call. The company recorded consolidated total revenues of Rs.794.4 crores in quarter 1 FI27 compared to Rs.1390.6 crores in the corresponding quarter last year. The decline is largely attributable to lower leather anidomide revenue during the quarter, which was partially offset by double-digit growth in the base business. EBITDA including other income for the quarter student at Rs. 245.7 crores with EBITDA margin of 30.9%. There has been an improvement in EBITDA margin quarter on quarter which can be attributed to the performance of our international and domestic business and lower and measured operating costs. Consolidated profit after tax stood at Rs. 206.5 crores compared to Rs. 269 crores in quarter 4 of FI26, which included one-time benefit of Rs. 115 crores arising from re-measurement of deferred tax assets on max credit and other deferred tax assets in viability, following the company's decision to move to the new tax regime from FI27. On a normalized basis, excluding this one-time tax benefit in quarter-four last year, consolidated tax grew by 24% quarter-on-quarter. With regards to our associate company, Adfok Ingram Golding Limited, south of Sika, revenue for the quarter stood at Rs. 1582.8 crores and profit after tax at Rs. 242.2 crores. Natsko's share of profit based on 35.75% holding as on 30 June 2026 was Rs 84.3 crocs. In July 2026, we acquired additional stake of 13.25% in Atworth Ingram, taking our total holding to 49%. This, we believe, will further strengthen our strategic position in South African market and increase our participation in the performance of AdForg income. Our domestic formulation business revenue stood at Rs. 136 crores. We also saw strong growth in our Brazil business. Revenue from Brazil stood at Rs. 178 crores, representing the growth of 180%. Thank you all, and now we will take questions and answers.

Thank you so much. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are required to use hand fits while asking a question.

Ladies and gentlemen, we will wait for a moment while the question queue assembles. Reminder to all the participants, if you wish to ask a question, press star and 1. Our first question comes from the line of Vamsi

from ASKIM. Please go ahead.

Hi, sir. Thanks for the opportunity and congrats on the good side of your numbers. My first question is in terms of the breakdown of your export revenues. Can you please give me a constant currency growth across your key geographies of Canada and Brazil?

So, Brazil has grown, as I said, it has grown by 180%. The revenue of Brazil, as I mentioned earlier, was 138 crores.

And Canada sales?

Canada sales for the quarter was around 56 crores.

Understood, sir. Also, if you were to just look on a quarter-on-quarter basis, you know, in constant currency terms, there seems to be a 14% kind of decline.

Any specific geography which you would add to with this joke?

Yes, sir. So, basically, I was trying to understand the quarter-on-quarter decline that has happened in the export sales. So, there seems to be a constant currency decline of almost 14%. Is this attributable to any specific geography?

No, it's just a regional cycle. I think we have different orders at different times. I think the increase in the profit didn't come from the Indian company, it came from the associate company. If you see the numbers, normally the ad cost profit share is around 35 to 40 quarts a quarter, at our 30 quarts a quarter. It came, this quarter came to 80, I think that's why the bump on earnings came from there, not, and that's the reason why there is an increase in profit. And, and the orders themselves, I mean... The reason why ADCOG delivered a good set of numbers is because there is a strong blue season in South Africa at this time. So, I think that's why the numbers are the way they are.

So, even on a constant currency basis in the ADCOG business, there is a healthy growth, sir, of, let's say, high tingle legit?

In this particular point, yes, because of the blue season.

Thank you, sir. Also, if I were to just ask a question on the domestic sales growth, could you provide a breakdown of how the Bayes business has grown and how SEMR has incrementally contributed this quarter?

I think that Bayes business normally is about 107% of the quarter. I think we just caught it into 130 something. We believe we are able to maintain that 130 number. I think a lot of it has come, I think... Some from Somongluten, obviously. I think they have a pretty good run on Somongluten, and some from Somongluten, and some from Somongluten. And also our base business has also done well in our homology and other segments of the office. Overall, the domestic has done very well. I think this year we expect that domestic will decrease to about 25 percent in which in support. Understood, sir.

Just one last question with basic definition. So, basically, sir, he closed the year at about 2,400 crores of cash, and, you know, after having paid out for this incremental stake in ARCOC, I think we still have a decent, you know, close to about 1,000 to 1,500 crores kind of cash sitting. So, any incremental insight on why the proposed fundraise of 2,000 crores is planned? Any specific target therapies or kind of assets that you're looking at?

Yeah, so, you are right, our cash, net cash, as in today, is around 1,000 crores. Obviously, last one year, if you look at the kind of investments we have made, it's almost 3,000 crores, primarily at cost. We had two bank acquisitions of stakes in at cost. Both together, it was around 3,000 crores. We have some loans to pay off and some capital expenditure, but at this tension, we are also looking at a couple of very interesting opportunities or acquisitions, some kind of an M&A opportunity, and we believe that this cap would be really required, and we believe that this would be helpful at the right time, and hence we want to raise the money from the market.

Understood, sir. Any color on the sign of Cemento-Clinger? Will you come back to another person? We'll come back to you again, my friend.

Come back again.

Make a call.

Sure, sir. Thank you. I'll join back to you.

Thank you.

Ladies and gentlemen, anyone who wishes to ask a question, may press star and watch.

Also, in order to ensure that the management will be able to address all the questions from the participant, we requested to kindly limit your question to two questions only for participant. If you have a follow-up question, please reach out to you. Our next question comes from the line of Kunal Randhurya with Access Capital, please do it.

Hi, good evening. First question, Mohamed. So, very sharp decrease in other expenses, both quarter-on-quarter, year-on-year. So, if you can kind of highlight the reasons behind it, and is this the kind of a new run date that we should expect going forward?

Thank you for the question. Yeah, there has been a decline. Obviously, if you look at the last year Q1, There has been a high R&B spend which happened, and you know R&B are not a very stable quarter-on-quarter run rate, it depends on a lot of milestone and the batches, exhibit hires, clinical trials, etc. So in last year's quarter, yes, there was a very high spend on R&B, and we also had higher legal costs in last year. Current quarter is slightly lower, and this cannot be the run rate, there will be a little bit higher spend going forward, but current quarter will be lower than the previous quarter for sure.

I think, you know, we, sometimes there will be, you know, an increased rate for the project. For example, let's say you're doing a big clinical trial, but they do take you with that. Sometimes there will be a rate for the next year. If you don't have a batch in that particular quarter, then there's no expenditure. So, we plan it according to the cash flow that we have. So, we plan our project based on when we have cash flow. So, you can't like, you've asked me to spin me around and say this will be this quarter, it could be higher or lower, but typically I think when you give us guidance, we assume these, you know, these costs and then we build in the fact number of months based on what we believe we have this kind of thing. And you should take an annual approach as a prescription.

Second question is the international formulation business. This quarter was 477 growth. You also mentioned there was good growth in Brazil. So, what would explain the quarter-on-quarter decline? Is it the causality or the decline in bromalidomide? If you can, you know, throw some light on this.

I think, even in the coffee shop, I was, you know, see, there are, Kunal, I mean, you can't, like, you know, there are different titles for different products.

I certainly don't give up product by product.

I don't give up for it. Sometimes we have one tender and one product, sometimes you have obviously formula amide, obviously the one in the previous quarter, so all the seasonal and quartet stuff happens, I think I would focus on the larger picture, I think, you know, I don't want to get, we generally give a guidance for the year and then we tell you what is the major guidance for the year, for the quartet. Thank you. Thank you.

Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and one on the attached phone telephone. Next question comes from the line of Reshvi Shetty with Dollars Capital. Please go ahead.

Yes, thanks for the opportunity. Sir, out of your total export formation business of 477 crores, how much contributes from the subsidy? You have given us Canada and Devin number. If you can also give the rest of the world number.

I don't have a split version. I have bigger ones. The smaller ones I don't have. I don't have it on my hands, but I don't want to give it a perfect number. I'll pass.

Okay, and on the agrotech sales, on the agrotech sales, that is your crop health sciences, have you break even in business?

Say that again, have you? Can I give you the question soon?

Sir, on the crop health business, are you still making the EBITDA loss or we have already done the break-even?

No, so basically for the quarter there was a loss, right, but the goal and our expectation for the year is to break-even. So, if you look at overall scenario for the crop health is very, very seasonal, right, Rashmi? So, as probably most of you are aware, there's been...

And, sir, on the revenue part, what will be the guidance for

the cropping? Thank you, everybody. See, let me just give you an indicative number. See, last year we had about 138 crores total, and we were about 40 in Q1. By Q2, Q3, I think we should, you know, be very close to that number.

The current income growth, but again, I think Q2 will give us a fair idea of things like that, because Q2 is from this quarter for the agriculture. So I think we would prefer any particular guidance. I think it's the same guidance that we gave us earlier in the year, that we end the year with about $75,000 and our gross sales will be between, you know, $33,000 to $34,000 in that region. I think beyond that, it's just coming from our same.

So, only total sales which we are saying, you know, 33 to 34 billion, when you just annualize this quarter sales, it comes to around 2,800 crores. That is, that roughly comes to 28 billion. So, whatever that extra sales which we will be generating, it will be coming basically from which geographies? Who will be the major contributor? Whether we are going to see a traction in the export part of the business in the U.S. or in India or in the rest of the world?

We're not doing a geographic split per se. I think for Brazil and Canada, we have because we have a sum that we can identify. Other numbers, other numbers are out there. But yes, I think the growth areas will come from these three companies, right? Brazil, Canada, and US. All three of them.

Okay. Understood, sir. Thank you. That's it from my point.

Thank you. Next question.

Thank you. Our next question comes from the line of Abhigyan Srivastav with the Magnus Investment Managers.

Please go ahead. We are not able to hear the detector speaking. Can we go to the next caller, otherwise, please?

Okay. Shahabian, can you hear this?

Yeah, I can hear you.

Yes, yes, you can hear me.

Thanks. Thanks for taking my question, sir. I have a few questions. Firstly, this current quarter, do we have any contributions from the government?

So, current quarter, it is very, very small.

It is negligible to see the list.

Okay, got it. And, sir, our tax rate has been a bit volatile for this quarter and the previous quarter as well. Do we have a particular tax guidance for FY27 and going forward?

Peace out. The tax rate is a combination of, since at the control level, it is a combination of the global tax, country by country contribution. In India, at least I can say that we have since we have moved to the new regime, the tax rate would be around 25 per month, and obviously there are some disadvantages of PSRs and donations happen, so roughly in India will be around 27 percents, and globally it all depends on which geography is contributing more, this quarter doesn't have a larger contribution where the tax rate is more than 25 percents, and hence the quarterly tax rate is quite high this quarter. So, very difficult to give a very clear guidance around that, because it is a combination of multiple factors, but yes, this coordinate is high.

Okay, I see. I see. And, sir, two questions around our recent launches, which are upcoming. So, for Carfil Zomid, we have likely a calendar 27 launch with the launch settlement with the innovator. So, are we on track for this launch?

I cannot confirm the date, but yes, the launch is on track. I believe we will talk about it for the launch date. Yes, the launch date will be an upgrade right now, and we think the update should be completed by the end of the year, and we believe that we will be able to launch it at the time when the launch date is set. So, because the launch date is on track. Thank you. You have your two questions. I am sorry.

Next question please.

Are we done with a question?

Yeah, just one more question. Regarding Ola Parrot, could you please share what the current litigation status is with the innovator, and do we have any sort of like an outer timeline by which you believe that an outcome might be decided?

Ah. I think, I don't remember the date, I think the trial date is set, I think, I don't remember the date, I think sometime in the next few months. I know the exact date, guys. Topline and I'm not able to remember what date it is. We have a tentative of course, so it is good. And then the issue of exclusivity is there, because it took more than 30 months. So we're hoping we have kept the exclusivity, we have some arguments that have not been determined yet. I think these are two important factors, the determination of the one issue date and I think it will be the trial, so I think both, the trial date I am not going to remember, so I do not want to pretty try it. Schedule I think in the next few months, but I cannot click the date, and then the determination of the exclusive, which is not been determined yet, so I think these are two open factors, open questions on this part, okay? Okay, got it. Okay, thank you. Thank you.

Reminder to all the participants, please limit a question to two questions or leave a participant. Our next question comes from the line of Tanya Chaudhary with Investec. Please vote.

Thanks for your opportunity. Sir, given that you have some experience in South Africa now after the acquisition, what are your plans to improve growth and profitability in South Africa?

I think overall, I think we see a lot of synergies between Atcore and Atcore. I think the first synergy is obviously the pipeline from Atcore which can be put in Atcore and which can be

distributed in South Africa.

Second is that connect with our Indian partners, because we usually do a lot of alliances with other Indian companies to other markets, so we have a really strong relationship with other Indians that are active. I think there are two major synergies that I see. One is the R&D student, and second is the pipeline, we are able to source pipeline. The benefits of our shareholding, you will see, what are we getting right now, and Adpock is great from the business, great business as they have already. This is the value of Matco and Matco Pipeline and all that will come in the next two series. So, we have been doing this for a long time, but also AdCorp has a lot of meaningful strength to our business. As you can see, this quarter example, you know, 35-40% of our earnings are coming from AdCorp. So, we are able to sort of build a strong base business, sort of bring less volatility in our earnings. We are trying to strengthen that.

Got it, got it, sir. Also in Brazil, given that you are witnessing strong growth, are there any key launches which are driving such growth and are there any meaningful launches planned going forward?

I think I'm going to be 500 driving to work, so I think that's why it's a very good number. And we also have another million to launches in the EF27 as well, subject to some patent litigation. In India, we don't do any rich molecules because of comparative reasons, but overall the portfolio is doing extremely well. So, again, we managed to have very good growth in Brazil as well. So, it's a fairly diversified model, and now I think India is also growing very well. So, a lot of the revenue pickup we are getting now is over-missed obviously. And so, I think... I think it's a comfortable way here. And we are objective that we will do another acquisition, hopefully, and if we are able to do that, we are able to build a diverse pipeline of geography and revenue avenues so that we have more stability in our case, if you can answer your question.

And, sir, lastly, if you could guide for how much we've done from Semahutai in the first quarter through?

I think the brand is doing our Semahutai.

I mean, I can tell you what we're doing. The market is fairly comforted. It's not. I think this is what you always said in our earlier calls as well. So, it's been fairly comforted. And... So I think our grant per month is doing around two CS, but we have a lot of other third party business, which I don't think we get repeated. So I think, but I've faced people say that I think right now this is where it is, but over a period of time this grant should do very well. But right now the market is early, although it is much of good, because the competition is very intense. I think we are just checking out, but we will see. In a Friday week, everybody will come in the next few months and I think so. Halopnao is pretty safe.

Is it profitable, sir?

Halopnao, it doesn't lose money, but it doesn't make much money, I guess.

Alright, alright. Got it, sir. Thank you so much.

Thank you.

Next question comes from the line of Arjun, an individual investor. Please correct.

Yeah, I hope I'm Audible.

You're Audible. Go ahead.

Yeah. So, I think we are in interesting times with respect to South Africa. On 12th of August, India and South Africa have signed their terms of preference for preferential trade agreement, right? So, I want to understand how this is going to impact our business, and I also seen some, one of the Indian companies has already got approval for Samaglutide launch in South Africa. So, when are we going to get approval, and how big the market would be?

Regarding the trade deal, I am not well informed my friends, so I don't want to answer that question, because I don't know if I'm aware of it. Regarding semangutide, I find more about approval in Philadelphia, this is what I am just saying. In terms of our approval, I think we are a little away, but we are trying to see what are the ways we can hasten to launch the semangutide. We are also looking at other drug prices as well, but at this time, yes, our doctor is a little away, but yes, I think so. We are looking at other possible spread parties, vendors who will give us, but yeah, we are working on it. So, I will conclude that it is Inter-Africa, it is interesting opportunity, but numbers I don't know either, I cover my mind at times.

Okay. Okay. Sir, one more question, sir. This is with respect to our natural cost health science business. I understand that already we have, you know, like approved the de-merger and other things. So when can we expect the actual de-merger to take place from an inverter point of view, sir?

Yeah, so the de-merger again, the plans are still active, but now we are also looking at this potential fundraising activity. So, with that activity in the immediate way, so after that we will continue on the de-merger aspect. So, it could probably delay by about 2 to 3 months.

Oh, okay.

It could be launching by, yeah, instead of, I think, probably instead of December, it could be about March.

Okay.

Thank you, sir. Thank you, sir. Thank you.

Thank you. Thank you.

Yes, our next question comes from line of Plano Chala with JNAMC. Please, great.

Hi, sir. Congratulations to the good quarter. Sir, I just wanted to understand one small thing. We had somewhere close to three to three and a half thousand crores of cash on our value sheet as on barge. After that, we would have spent some to acquire the additional stake in ARCOP. Any particular reason for taking the additional resolution?

So, yeah, as already 5-16 again recall, right now, between March and now, we spend money on additional state acquisition. Currently, we have around 1,400 crore of net cash. As we would have realized that over the last one year, 3,000 crore has already been spent. We are looking at a couple of interesting acquisition opportunities for which we would require cash. Additionally, we have some short-term rules and some CAPEX requirements. So I think whatever money we raise will be going towards these things. And we want to be ready with the money for any interesting opportunity which is already there in our evaluation. So that's the primary reason we want to raise the funds.

So then, you have highlighted that you require cash for your internal KPX and something, some capacity expansion that will be planned. Can you highlight what that number will be, say, for this year and the next?

So, for organic

KPX, you can at least highlight your number for the next two years.

Organically, I think every year, you know, we have around 250 to 300 crores of CTEX here and there. That's around it anyway, we have.

Got it. I'm sure, any color that you can provide on when do you plan to launch some of Adco's India products in the Adcock entity?

So, we have what we have done and we have five registrations. So, we have actually five and 12 years already. Typically, registration takes two years or so. So, we will see that the natural product might come into the market maybe around 28th, I think, would be a reason. A typical registration takes about 18 months to 24 months. So, 28 is up. Got it, got it.

Perfect. Thank you so much, sir. Thank you.

Thank you. And his question comes from the line of Rishikesh Petrolia with 361 Capital, Market, Private Limited. Please go ahead.

Sir, hi. Am I audible?

Yes, sir.

So, quickly, Rajiv, can you provide any material changes that could have happened on the innovation side? The four aspects that we have, can you take us through?

I think there's nothing much to record at this time. I think the biggest factor we have made is evens. So that entity is doing reasonably well. I think that those multiple patients, sorry, they have done transplant for multiple patients, and two patients have done extremely well. I mean, they've survived on the big kidney for about more than eight months. So I think we'll have some late short time over that asset. I'm very happy of the four assets that are there. This is the most exciting one that we have. I think it's the most valuable one that we have. At this time, I'm not, I can't even update, but I'm hoping that in the next few months, we'll be able to get some really exciting updates on this aspect.

So when can we see a next cat-list or when an update?

At this time, we'll be pretty much at this day, but as I said, you know, we're hoping we'll get some good updates in the next few months.

And second question on the R&D pipeline. Okay, I said FTF. What kind of finding do we expect now in the next two years? Any idea?

I think we have an internal target for probably 8 to 10 hundred years. And FTF actually should target about 2 to 3. So I think, you'll see how things go. I'm very confident that we're able to deliver some FTF. But so far, you know, we're pretty much it's the same. But I think we're hoping we'll deliver this one or two this year. All and welcome, I can be with you.

Thank you, Raju. I'll get back in the queue.

Yes, sir. Thank you. Thank you.

Ladies and gentlemen, anyone who wishes to ask a question, press star and why?

Our next question comes from the line of Vamsi, with ASCIM. Please go ahead.

Hi, sir. Thanks for the follow-up. So, I just wanted to check on whether the ad guidance of close to 750 crores still holds, or is there an upside risk to this number? Because if I see ad cost contribution currently, you know, there's close to about a 150 million constant currency, or in real terms, close to a 150 million kind of contribution to net cost earnings. And given the increase in stake now, it is likely that if I were to analyze the same number and see, close to about 440 to 450 crores of that would be coming from this act of entity itself.

Don't analyze it. It was a seasonal month, because it was a flu season. Our guidance still remains around 2050, and much change in the guidance. And so what it had was a conflict. Normally, the... Good day, everyone, and welcome to the call. Usually, that's the base combustible. Please- I've used my ability to write their numbers, because-

Next question comes from the line of Santosh, an individual investor. Please go ahead.

Go ahead. I just want to ask, in future, if Apple give opportunity to buy some more person upset, will we go for that? Yeah, of course, I think we are, as you know, our management strategy is to always be on the long term, and we are very well committed to South Africa investment. At this point in time, we don't have an opportunity, but whenever it comes up, we'll be more than happy to take it, and that's our strategy. It's a very strategic course for us, and yes, of course, we'll go through it. But right now, how do we do it?

So, how much percent we can go, like Shields, Amity, H&B, or anything like that, or?

I didn't understand the question, my friend. We lost you.

So, right now we are in 49th of state. So, still, how much percentage we get, our city will go for that?

I look now at 49. I think as a sum, we invested large. It wants to hold on just 51. So, there is no office to be in. But we have a third side of us. I think if the opportunity comes, then yes, we will definitely look at it. We like the asset and we are very happy with it. But at this time, it was only quite a time which we were able to get. And at the near time, I don't see ingredients at this time. This is what it is.

Okay. Thanks, sir.

Thank you.

Anish Christian comes from the line of Arjun, an individual investor. Please go ahead.

I hope I am already good. Yeah. Sir, I believe our company also has a very good land bank. Sometime back, I think, we have sold some land to Microsoft. Are we not getting such offers, you know, nowadays? Because we are raising funds also. So, I thought this could be one of the source.

I think we have to do the land bank, but there are some different styles and some we want to utilize for our own operations. The problem with land banks, I mean, is that there is always that, this is litigation that we always have, so there is always, I would say, 15% of our land is tied up in litigation. It is a lot of privilege in nature because people that, you know, want to profit by having litigation and then, you know, credit. So, I think these can be directed, I agree with you, absolutely right, but at the right time, at the right price, yes, of course. Good morning, everyone. And subject to, you know, clearance of these small deteriorations. It's difficult, let's say you want to sell, I give an example so that you understand our tradition. Let's say you want to sell a 20-acre piece, you will have 19 acres to be, but there is one extra right in the middle which is not. But if you want to get a good price, you sell all the 20, or otherwise you will break it up into smaller pieces. So sometimes you are like, let me wait and resolve all the issues. So, these are the predicaments that we tend to have. So, I would say yes, we can monetize it, but I would say we hold you on, ok.

Sir, this is next. My next question is with respect to the fundraise. So, I have seen the history of the prior fundraisers which you have conducted. So, it has been mostly, you know, QITs only. But as an individual investor, you know, I am placing a request. If there is a right issue, we would like to participate and increase our stakes. This is just a request rather than a question. I understand.

I think that it's pretty awesome. Thank you very much. We are using our analytics one star.

Yeah, thank you so much, sir. We are very happy with the way you are running this organization and being very transparent and honest. So, thank you so much. Thank you, sir.

Thank you. Next question comes from the line of Sahil Mahajan, an individual investor. Please go ahead.

Yeah, so am I audible? Yeah, you are pleased. Yeah, so I'm a new investor in Natco, so I wanted to know that what is the payback timescale for our R&D experiences? Like, how do we think about the future while we are doing R&D experiences?

That's a very good question, I think. Generally, we have different payoffs for different things. But I'll tell you what really makes money, what makes you moderate or more money or low amount of money. The one that comes sooner is the one that has the least amount because the outcome has a lot of comparison. The one that you are willing to wait the longest has the highest return. Particularly if you want to think of this business, things which are 8-9 years away are the most valuable ones. We will probably make 20-30x of what you could or 40x of what you could. Do you want to do things which are like the next 12 months?

So, what percentage of our expenses we kind of put towards the long term and what percentage is towards the short term?

I would say 70-80% of our money is put for things which are going to happen in 2009-29. The earliest one would probably be 28-29 and then going up to 2035. Everything between 28-35.

Bye.

Thank you. Our next question comes from the line of Amman, an individual investor. Please go ahead.

Am I whatever, sir?

Yes, sir.

Please go ahead.

Sir, you invested 1,400 crores in South Africa. What was the reason for this?

Yeah, I think we took a little bit, but I think the total amount we invested in that particular price when we were 30 percent was I think 1,000, 1,000, 1,000, 1,000.

And my second question, are you looking for, according to more spec, I mean, controlling state in the book?

Controlling state, yeah.

So as we mentioned earlier also, that we are very happy with the investment, and the company is doing very, very well, run very professionally, overall it's a very good asset for us. Can we say right now, the other shareholder is biggest, and it's not in offering right now? Whenever it comes up, we have a first right of refusal, and we be happy to agree with that, provided it comes at the right right. So, we are looking for the opportunity to increase the state, but currently, it's not there.

And my last question. Hello.

Yes.

My last question regarding users 2,000 crores, so which photography in all this?

You broke up. Can you repeat that, please?

Hello, I am Aadogan. So, you raised the problem cover from issue of equity. So, good geography, you...

Good, good.

Good, good.

Good, good. We are evaluating various options of how to raise the money. It can be anything, it can be QIT, it can be rights, it can be other things also. There are opportunities of acquisitions as we mentioned earlier. There is a smaller piece in India and a very large opportunity outside of India. So we are not getting into the geography subject, but there are two opportunities, one could be outside and one could be within India.

Okay, thank you. This is for my time.

Thank you.

Our next question comes from the line of Rishikesh Patole with 361 Capital Market Private Limited. Please go ahead.

Rishikesh, you may please proceed ahead with your question.

Hi.

Am I audible?

Yes, you are.

Yeah. So, quickly on semaglutide, you provided the update for India market, as well as the South Africa, I mean, we are still far away. Can you similarly provide for Canada as well as the Brazil region? Where is, at what stage is our dossier and when do we have it?

Thank you very much, everyone, and welcome to the call.

So, in Canada and Brazil, both? Both, that's helpful. And second, can you forward any updates on the launches lined up for? FY27, 28, 29 for the U.S. market. Anything that you have to say? Yes, sir.

We intend to launch the service today. We can't even have them because of the administrative use, but yes, we have two launches in the next launch.

Okay, and just lastly from my side, if I may, on the agri piece, I mean, CTPR exports are coming, so we are still, I mean, any update on that?

On CTPR, technical, some level of exports have been done on stage, but not very significant. Predominantly, we have to have domestic focus on this stage. But we are working on several registrations across industry properties.

Thanks. I wish there was a follow-up on that. On the domestic portfolio, apart from CTPR, have we done any more launches?

Yeah, actually, quite a few. I mean, it was a segue, right, where we entered. But today we have roughly about 35 products and a good combination of insecticides, fungicides. And some of the fungicides are doing fairly well. In fact, one of the top, you know, things which is working well, fungicides, one particular brand called Glance, which is I would say it's a limited competition product plans, and if you look at CTPR versus non-CTPR, you know, in terms of revenue contribution also, I'm not being, I can't do an exact number, but just out of 35 products that we have, 8 products are CTPR related, the rest are non-CTPR, right? So, this is a significant number of products. From a revenue perspective, I will get back to you on that, but you know, maybe CTPR 30-35% is the contribution from CTPR, right, the rest is non-CTPR. So, the pipeline is also very interesting, what we are looking at, particularly typically you look at the registrations that we do internally. is something called a 9-3 registration, which means the limited competition, versus the 9-4, which is a lot of competitive players are there.

So, we have interesting 9-3 products which

continue to come, and the next financial is here has a very interesting portfolio as well. So, I think we are quite bullish in terms of where we are today.

Thank you Rajesh. That's all from my side.

Thank you so much. Ladies and gentlemen, anyone who wishes to ask a question may press star and one.

Remind to all the participants that if you wish to ask a question, you may press star and 1.

As I know for the question from the participant, Aina and the conference over to the management for the colony remarks. Thank you. Aina over to your team.

Thanks, thanks everyone for joining the call. We value your time and participation. If you have any further questions or need any additional information, please do feel free to reach out to us. With that, we conclude today's earning call. Thank you very much.

Thank you so much, sir. Ladies and gentlemen, on behalf of NADCO Pharma Ltd that concludes this conference, thank you for joining us and you may now disconnect your lines.