Please note that this conference is being recorded. I now hand the conference over to Ms. Darshita Shah from Antique Stock Broking. Thank you, and over to you, Ms. Shah. Thank you. On behalf of Antique Stock Broking, we welcome all the participants to Dhanuka Agritech's First Quarter FY25 Earnings Call. Today, we have Mr. M.K. Dhanuka, Vice Chairman and Managing Director, Mr. Rahul Dhanuka, Joint Managing Director, Mr. Harsh Dhanuka, Executive Director, and Mr. V.K. Bansal, CFO on the call. Without further delay, I would like to hand over the call to Mr. Dhanuka for opening remarks, after which we can open the floor for Q&A. Thank you, and over to you, Dhanuka. Thank you, Darshita ji. Good afternoon, ladies and gentlemen. I am M.K. Dhanuka, Vice Chairman and Managing Director of Dhanuka Agritech Limited. I welcome you all to the Q1 earnings call of Dhanuka Agritech Limited. I hope all of you are doing well and keeping safe. I have with me Mr. Rahul Dhanuka, Joint Managing Director, Mr. Harsh Dhanuka, Executive Director, and Mr. V.K. Bansal, CFO of the company. As you are aware, Dhanuka Agritech is a leading agrochemical company in India, focusing on brand sales in the market. Also, in FY 2024, Dhanuka has commenced operations at our Dahej chemical synthesis plant, and we are working to create breakthrough in chemical synthesis. Dhanuka is working with the vision of transforming India through agriculture. We have a pan-India presence to reach out to more than 10 million farmers with our products and services. Dhanuka's key focus has been on introduction of novel chemistries and extensive product development, distinguish us from the rest of the industry. Firstly, I would like to share a very important announcement with all of you. After attaining the age of 75 years, Mr. R.G. Agarwal, who is the chairman of the company, has decided to pass on the baton of the organization and step down from his operational role. I'm thankful to him and the Dhanuka's board of directors for entrusting this responsibility to me to take on the role as the chairman of the company. Mr. Agarwal's leadership has been nothing short of extraordinary. His vision and foresightedness have guided us through challenges and opportunities, always with an unwavering commitment to excellence. Friends, I am happy to share that Mr. Agarwal has accepted board's request to continue guide and mentor us to ensure that we stay in alignment with our long-term business strategy as Chairman Emeritus. We welcome him, and he has been elevated from Chairman to Chairman Emeritus. Further, Mr. Rahul Dhanuka will now assume the role of Managing Director of the company. Rahul has worked dedicatedly over last 25 years in making Dhanuka brand powerful, and under his leadership, Dhanuka is transforming into a sales and marketing powerhouse. I'm confident that he will lead the organization into a bright future. Now, I will request Mr. R.G. Agarwal, Chairman of the company, to share a few words with us on this transition. Dear friends, at the age of 75, as I stand here today and look back at my journey of 55 years, I'm filled with immense pride and gratitude towards all our stakeholders, shareholders, directors, investors, employees, customers and vendors. With all the support, I have been able to build a great organization, Dhanuka Agritech, which is completing 44 years of operation. Today, as approved by the board, I am overjoyed to pass on my role as chairman to Mr. M.K. Dhanuka, to guide the organization into the next phase of growth. He has been a great pillar for the organization and working for the growth and success of the business. He has exceptional leadership skills and a remarkable entrepreneurship. Further, with Rahul as the new managing director, I'm looking at the speed of Dhanuka increasing even more. Rahul's connect with people, focus on building brands for business, and fostering great relationship with all principal companies, has played a critical role in our growth. I'm particularly delighted with the last financial year's performance, where we achieved record high profit and one of the best profitability levels, in spite that last year was not good and many companies were having degrowth. I am also pleased with the continuing success in the first quarter of current financial year, which is a very, very proud moment. Our achievement is exciting and highly commendable. As I move on the next stage of my life, I would like to wish both of them great success. Once again, thanking all the investors and all of you on the call for your support to Dhanuka in the past, and hope same you will continue in future. Thank you very much. Thank you. Thank you, Mr. Agarwal. Friends, as Chairman, I pledge to honor our heritage while embracing the winds of change. We will innovate fearlessly, knowing that progress is not linear. It is exponential. With your support, I am committed to build business that increase our speed further. As we transition, let me assure everyone that this process has been years in the making. It began with Mr. Rahul's appointment as Chief Operating Officer in the year 2021, followed by my appointment as Vice Chairman, and Rahul taking on the role of Joint Managing Director in 2023. Through careful handholding and seamless, today marks the culmination of our effort, the passing of the-- Friends, transitions can unsettle businesses, but our transitions will fortify us. Our future is bright, and we stay committed to transforming India through agriculture. India [Foreign language]. Coming to the Q1 performance of the company, friends, this year, the weather conditions have shifted positively, although not as per the expectation. The effects of El Niño have subsided, however, the La Niña effect is yet to be observed. There was less than 100% rainfall in first quarter and uneven rainfall in several regions in the month of July till 25th July. The raw material prices have mostly stabilized now. However, there is still price reduction on the basis of Q1, FY 2024 versus Q1, FY 2025. Overall, the demand for all products was very good in this quarter. The rainfall was highly uneven in July, especially in the central region, impacting herbicide liquidation. On a positive note, the IMD has given an updated forecast of above average rainfall for August and September for most regions in India. This is a good sign for the rest of the Kharif season as well as the Rabi season. Already, the water level in reservoirs and dams is increasing. Our new introductions, Purge, LaNevo, and MYCORe SUPER, are receiving great response from the market, with the demand exceeding our expectations. I am confident that these products will create new benchmarks in Dhanuka history. Further, we are going to launch two 9(4) Me-Too products in next three months. We are committed to keep bringing new products and technologies for the Indian farming community to support them in their endeavor to increase farm productivity and safety of the foods. Looking at the financial results of the year, our revenue from operations during Q1, FY 2024-2025, is INR 493.58 crores, with a significant improvement of 33.74%. I repeat, 33.74% as compared to the corresponding quarter previous year. EBITDA stood at INR 71.72 crores in Q1, FY 2024-2025, representing an increase of 64.46% as compared to the corresponding quarter of the previous year. Profit after tax is at INR 48.9 crores in Q4 of FY 2024-25, representing a growth of 48.45% as compared to the corresponding previous year quarter. Friends, the zone-wise percentage share of turnover was North, 31%; East, 8%; West, 42%; and South, 19%. Product category-wise share of turnover was: insecticides, 25%; fungicides, 10%; herbicides, 50%; other, 15%. You will notice that out of 100%, 50% share was only of herbicides, because initially, the consumption of herbicide is highest in the first quarter. But due to less rain, from first July till twenty-first July, the consumption of herbicides has been less and. There will be some good return in the month of July because of the known consumption of herbicide. For financial year 2024, the company has already rewarded its members by paying an interim dividend at the rate of 400%. That is INR 8 per equity share, having face value of INR 2 per share, which has absorbed INR 36.46 crores. The shareholders of the company in the thirty-ninth annual general meeting, held today, has approved the final dividend at the rate of 300%. That is INR 6 per equity share. This will absorb an additional of INR 27.35 crores, with a total payout of 27% of our last year's pay. Further, the board of directors of the company, in its meeting held today, has approved the proposal for buyback of 500,000 equity shares of the company for an amount not exceeding INR 100 crores. INR 100 crores only, at a maximum price not exceeding INR 2,000 per equity share. Thank you very much for your kind attention. We would now like to open the session for question and answers. Over to moderator. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone phone. If you wish to remove yourself from the question queue, you may press star and two. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of Yash from Stallion Asset. Please go ahead. Thank you for the opportunity, sir, and congratulations again on a great set of numbers. So given the strong momentum we've seen in Q1, you know, with 34% year-on-year revenue growth, do you believe that this is the right time to revise the guidance from 18%, for FY2025 to significantly upwards to about 25%, and your margins going up by, EBITDA margins by 20 and 22%? Yeah, you see, our guidance would be, we are upgrading from 18%-20%. As of now, as you're already aware, July was not a very good month because of some less liquidation of herbicides and some return of the June billing. Okay. I thought that, you know, we're seeing a very strong momentum in Q1, because typically Q2 is our largest quarter. It's very strong. How are you seeing Q2, you know, going on for right now? We are expecting a little lower double growth in Q2. Okay. Okay, okay. And so now my last question would be, how do you see your margins trending, sir, the next, two, three quarters? Do you think we can go about 21% EBITDA? You see, we are expecting on a yearly basis around 100% decline in the gross margin. Hundred bps. basis points, basically, and there was improvement in the quarter one, it was expected. But overall, because last year the gross margin was exceptional, so we are expecting a decline of around 100 basis points in the gross margin level, and similar dip would be on the EBITDA margins as well. Okay, got it. Thank you, sir. Thank you. The next question is from the line of Pujan Shah from Molecule Ventures. Please go ahead. Hi, sir. Any new plans for introducing 9(3) product in the coming quarters? Could you repeat your question? Yeah. Are you planning any 9(3) product to launch in the coming quarters, in the herbicide or any in the fungicide segment? Yes. So, we are planning a 9(3) product launch in Q3 of this year. Okay. And as of now, we are seeing herbicide demand being impacted. How the demand outlook you would be expecting in the herbicide segment, and how it would be evolving in FY2026? In fact, July has been a difficult month for the herbicides. Till June, it was a good run, but after the rains in the last week of July, we are looking at some of the herbicides picking up again. So for some products, the stage is over now, the crop stage is higher. But for some other products, for example, Targa Super will now have a good opportunity after the last week rains of July. So some herbicides are still going to have a good opportunity in the month of August. Okay, got it, sir. That is from me, sir. Thank you. Thank you. A reminder to all the participants that you may press star and one to ask a question. Thank you. The next question is from the line of Pradeep Rawat from Yogya Capital. Please go ahead. Yeah, good afternoon, and thank you for the opportunity. So, I have a couple of questions. First question regarding our engagement going on with innovator partners. So, with respect to the approval for manufacturing patented technical molecules, so how has been the engagement going on? Yes, so engagement is going on. We don't have any breakthrough as yet, but we are working on it. What kind of ROC and EBITDA margin can we expect from patented technicals? ... You see, it is very difficult to comment at this point of time because there is no such arrangement has been finalized over now, so that question cannot be answered. So any ballpark number, what could be it, more and above, the generic, technicals? So at least 50% higher than that or something like that? Oh, I can't comment on that. Okay, understood. And, my other question is regarding how much of our revenue comes from exclusive molecule tie-ups with innovators? Innovators, our molecules of 9(3) type is around 25% of the total turnover. Okay. One basic question: so, do the generic formulation are sold under a brand name, or is it sold without a brand name? They are all sold under a brand name. Okay. And do we have any plan to export formulation where registrations are required? So we have started exports of formulations, not in Dhanuka brand, but in some partner distributors in the destination countries. So their registrations are required by us, or is it the registration of our partners? Registration is required by the local distributor. Okay, okay. Thank you. I'll join back the queue. Thank you. The next question is from the line of Huseain Bharuchwala from Carnelian Asset Management. Please go ahead. On the technical, you just said that you are doing some patented technical. So, give me elaborate on that, please. Could you repeat again? Sir, you said you are doing some patented technicals, so can you elaborate on that part? What are basically we doing on the patented technicals? Is it on the manufacturing side that we are, we are doing in Dahej, something of that sort? Explain that part. So we did not mention that we have started manufacturing any patented technical. We are looking at tie-ups with companies who are having patented technicals for manufacturing purpose. At the same time, we are introducing patented technicals as formulated products in India, in Dhanuka brand. So no, patented technical manufacturing, but yes, patented technical introduction as unique products for the Indian market. Got it. Got it. And, sir, you, since you said there are returns that are happening in the month of July, so how do you see the whole year, financial year? If you can give us some ballpark in terms of the guidance. I think initially you explained to some extent, but if you can give some number in that field, it will be better for us to understand. For the whole year, what is the revenue guidance maybe? So 18% was initially, now you guide between 18%-20%. You cover up, and... Yes. That's right. We are giving the guidance of between 18%-19%, 20%. Got it, sir. Got it. Got it. And any update in terms of interactions with the Japanese player? Any update in terms of if we had certain site visits by the Japanese? So is there any further discussion that are happening or any of that sort that we are able to commentate or any discussions with the Japanese you can just help us out to understand that? Whenever there is any significant update, we will definitely update all the investors. Yeah. The line- Could I answer your question? The line for the current questioner seems to have disconnected. We will move on. Okay. -to the next question. Sure. The next question is from the line of Viraj from SiMPL. Please go ahead. Yeah. Hello? Yes, sir, you may go ahead with your question. You- Yeah. So first question is, you know, you mentioned about sales that are happening in July, and, you know, if you say for the full year, we're expecting around 20% growth. Now, given the kind of growth we have seen in Q3, you know, it would mean that for the balance, you know, three quarters of the year, the growth will be flat, you know, even if I consider 20% growth for the full year. So why this conservatism? Just trying to understand on that. So that is one. And second is, you know, similarly, also, you know, on the margin guidance which you gave, right? That on a full year basis, we're expecting around 100 basis points contraction in EBITDA margin. Again, that would mean, a degrowth impact for the rest three quarters. Just trying to understand, you know, how does it add up, given the environment is very positive and the RM price is also relatively contested? You see, when we are talking, we are talking as a consolidated view, including Dahej. And so far now our Dahej unit is, you see, delivering negative EBITDA. So considering that impact, I'm telling you, there would be impact of around 100 basis points. And as far as you are talking about the 20% growth in the top line, if we are delivering around 15% growth quarter-on-quarter basis, then only we will be able to deliver 20% annual basis. No, I understand. So for Dahej, what will be the revenue contribution and the profitability or the loss, how much would that be for the quarter? For the quarter, the contribution, the top line is around INR 14 crore, and in terms of the EBITDA, there is a negative EBITDA of INR 3.7 crore. Right. Still, you know, I mean, if you adjust for Dahej also the losses which we've been incurring, it seems the base profitability, the base business, the B2C business could see a good amount of- could see some good profit being growth for the same one. For- I could not get your question. Okay. You know, the environment is so positive, and the way the RM prices are still, you know, quite favorable for branded formulated players like us. Right. You see, there was a last year there was an exceptional growth because the raw material price were declining every month-on-month basis, but similar reduction was not happening in the final product price. Because of which there are some extraordinary profit, extraordinary GP was there last year. Therefore, we are saying there could be an impact around 100 basis points on a whole year EBITDA gross margins, including Dahej. Okay. Okay, got it. And in terms of specialty, in specialty portfolio, what would that be in the quarter? Mr. Viraj, please repeat your question as you are not audible. Yeah, can I? My second question was in terms of the mix, product mix of specialty and non-specialty portfolio, and has there been any price correction in the specialty portfolio also? You see, major impact was in generic. Specialty portfolio, there was no much impact. What is the mix? What is the revenue contribution in specialty? It was almost 50/50. Okay. Sure. Thank you. Thank you. Before we take the next question, all the participants who wish to ask a question may press star and one. The next question is from the line of Rohan Gupta from Nuvama Wealth. Please go ahead. Hi, sir. Good afternoon, and thanks for the opportunity. So my first question is on breakup of volume versus price-led growth in the current quarter. Current quarter volume versus value, there is a difference of 6%. So our growth, volume growth is more than 39% as against value growth of 33%. Oh, so you're saying price was negative, minus 6% you're saying? Yes. But you see, on an overall year basis, we are expecting the impact maximum 2%, because, you see, last year the price was declining quarter-on-quarter basis. But the things have improved significantly. I am expecting the difference of value versus volume would remain around 2%-2.5% in Quarter Two, and should be zero sometime in quarter three, and quarter four should be little reverse. And on a yearly basis, should not, difference should, should not be more than 2%. Sir, with this 39% kind of, I mean, fantastic volume growth, my question is, Rahul, how do you see that the industry for the quarter would have grown? Also I heard that in July, definitely there was some in herbicides, some sales and sometimes slightly weakness coming back. So, just wanted to know that industry scenario and for the year, what kind of volume growth you are anticipating in the current scenario for the industry? Well, we are just breathing out of the end of the quarter, so it's difficult to give some industry estimates. However, my best estimate is that probably half of what we have grown would be the volume growth of the industry. And our growth has been driven significantly by our recent new launches, Purge, a very powerful Japanese herbicide for groundnut and soybean. LaNevo, a very strong insecticide for horticulture crops. And horticulture crops, as we have seen, have received a huge impetus across the country because of their pricing, value to the farmer, and also boost by the government. And our launch of MYCORe SUPER, which is a biological product and a soil quality enhancer that is also offered for specialty crops, horticulture crops, sugarcane and pulses. So these three offerings have really given us a big boost. And our, you know, couple of years back started export and domestic trade business has also given us additional boost. So I think so, what our team has achieved is, you know, a good achievement for the first quarter, and the industry growth would be somewhere about half of that. For the year, sir, given the monsoon so far now is quite encouraging and agricultural prices are also benign. So the trend for the industry growth will be similar, like, you know, half of the, I mean, roughly 18% kind of number you are talking about the industry growth. What will be your growth estimate for the industry for the year? I wish, but not that I can forecast for the industry right now. What I would say is that at Dhanuka, we are looking at a healthy double-digit growth, what we, you know, kind of estimated in the previous call. We are sticking to that estimate. We are looking at close to 18%+ growth for ourselves in on the overall financial year basis. Okay. So my second question is on the raw material prices. We have seen that the prices have now stabilized or have actually started going up in some pockets, in agricultural intermediates coming from China or even domestically. Dhanuka ji, my question was that, how is the availability? What we have understood that, some of the intermediate was not coming from China and domestic prices have gone up. So just, agrochemicals intermediate or technical availability, how it is right now, and how is the pricing scenario? You see, the prices have now reducing in most of the molecules. There can be exceptions because there are so many pesticides available in the market. There are registration of more than 250 products in India. So this is going to happen every time that out of 250 molecules, 10 products prices may reduce and 20 products prices can increase. So now the prices are more or less stable or in some of the molecules, like Cartap Hydrochloride, there is heavy jump. Mancozeb, there is jump. 2,4-D, there is jump. So some of the products prices are increasing. So overall, it's a mixed bag. Some products it is reducing, some are stable, and some are increasing. Availability from China is not a question mark. Availability is abundant because Chinese companies have increased their capacity manyfold and... But unfortunately, because of non-availability of vessels and the containers, the cost of freight has increased drastically. And because of non-availability, basically, there is a challenge and a gap in supply and demand in India. Because the supplies are delayed, the containers which were coming in 15 days time, it is taking minimum 1 month time in getting the supplies. So that's why that gap is there in demand and supply in this situation. Okay. Sir, in terms of the non-availability, you mentioned that definitely the freight cost has gone up. So how is the scenario now? Is it still the same, or it has started improving? Because we understand that the Red Sea crisis is still going on, and container availability still remains a challenge. So, and the rising, I mean, freight cost challenges are, I mean, when the cost is going up, are you able to pass it on to the end customer and farmers in terms of price? Yes. So, sir, the shipment cost, which had gone almost three to four times, has now come down to almost like two times of what it was at the beginning of this calendar year. So definitely the availability has improved for the containers, and the rates have gone down. Talking about the passing on the cost to the consumer, the freight cost in most of the products is a small component, and wherever the price increase is there, we try to pass it on regularly to our product prices. So my question is on this Dahej plant. We have initially thought about making some generic products here, as rights and all. So just wanted to understand that how is that product portfolio ramping up, and in the current scenario, have you identified or have you finalized some more products in generic category? Or still, the utilization level in Dahej still remains lower, and we are still only contemplating the CRAMs kind of opportunities only. So, Rohan, we are contemplating both. We are exploring, continuing to explore CRAMs and contract manufacturing opportunities. At the same time, we are also ramping up our number of products in the existing plant, generic products. So we have already identified, shortlisted, and developed the products. And soon, in this financial year, by the end of this financial year, we'll have one more product from Dahej. Okay, sir. That's it from my side, sir. Thank you very much. Thank you. Before we take the next question, we would like to remind participants that you may press star and 1 to ask a question. The next question is from the line of Darshita Shah. Please go ahead. Yeah, thank you. My first question was regarding the gross margin expansion. How much of the gross margin expansion would be due to better product mix, and how much of it because of the low RM price benefit? This large part of the gross margin expansion is because of the product mix. Very negligible impact could be on account of the raw material prices. Okay. Got it. Secondly, are we expecting the technical prices to inch up from here on, as you know, Dhanuka ji highlighted that there could be a possibility, or has it settled more or less? I believe the current technical prices for most of the products have stabilized, barring few products, as sir said earlier. Mm-hmm. There is few products price increase. Few products still there is some price correction. So on a financial year basis, we are not expecting more than 2%-2.5% difference in the prices on the overall portfolio for the company. Mm-hmm. On the sales return front, how has the sales return trend been until now in the second quarter? If you could highlight something on that. ... there was an increase in July, but I'm expecting in the overall quarter basis, there will not be any increase in the sales return. Okay. And, lastly, on the low double-digit growth that we guided for the second quarter, we have adjusted for the sales return impact on that, right? Absolutely. Absolutely. Got it, got it. Okay. That's all from my side. Thank you. Thank you. Thank you. The next question is from the line of Pradeep Rawat from Yogya Capital. Please go ahead. Yeah, thank you for the follow-up. So what is the average gross margin for a patented formulation and generic formulation? You see, we are dealing with more than 80 brands. For generic, there is a great variation. There are certain generic where the gross margin is around 10%, 12%. At the same time, there are generic which are having margin 20%, 25%, and few generics are having more than 30% margin as well. And in terms of 9(3), definitely a good margin, you can say better than the average margin. Okay, okay. And, how is the collaboration going on with Kimitec, and how big can be the biopesticide business for us? Biopesticides business opportunity is actually huge and emerging, and the government's continuous effort to actually encourage farming in different forms and ways, and recent budget planning of bringing one growth farmer in alternative methods of farming, opens up new avenues on that front. Kimitec, the Spanish company, is also developing various new products for their own launches in Europe, America, and in India also. We are in the discussions with them for bringing various biological products as we continue to promote our own biological range. So we do hope to bring in some of Kimitec products by the end of this financial year. How big could this be in percentage terms to our overall revenue? Well, as of now, it is insignificant in terms of our overall revenue. And if we compare with the overall industry consumption, our estimate of the actual crop protection by biologicals is less than 5%. If we include in this biological nutrition, which includes seaweed, mycorrhizae, then that is another 5%. At Dhanuka, we are very strongly present in three formulations that we offer to farmer of mycorrhizae, including our first quarter launch of MYCORe SUPER. We are offering three variants of seaweed extract in name of Dhanzyme Gold and Dhanvarsha, which is our amino acid offering, and we are also offering plant nutrition in some other forms. So we are very strongly positioned along with the farmer when it comes to nutrition, soil health, and plant health management. But in terms of overall biological portfolio, it is really insignificant currently. But we do hope that with the changing landscape and mindset of the farmer, this opportunity is there to stay and would probably grow at the double-digit rate as compared to the conventional chemicals. Yeah. Understood. And, one bookkeeping question: So, what is the production capacity at our formulation plant, and, what is the utilization, currently? You see, in formulation, plant capacity is not at all a challenge, because we are making different sizes of, say, SKUs from 50 ml, 100 ml, 250 ml, 500 ml, 1 liter, 5 liter. So you see, calculation of capacity utilization is very difficult. It changes with the SKU. So as such, there's no challenge in the capacity per se. Okay. Understood. And, as of now... Yeah, yeah. Please return to the question queue for your follow-up question. Thank you. The next question is from the line of Rohit Nagaraj from Centrum Broking. Please go ahead. Thanks for the opportunity, and, congrats on, one more robust set of quarter. So first question is, on the manufacturing, the manufacturing facility. So when, based on our strategy and our visibility, when do we expect that, this facility will be broken even? Is it probably sometime end of FY 2025 or maybe sometime mid FY 2026? Any timeline based on, current visibility? Thank you. We are expecting breakeven in FY 2027. Sure. That helps. And the second question, in terms of the targeted markets for the molecules from Dahej, which and all are geographies where we are currently targeting? And given that, Dhanuka ji also mentioned there has been an ample supply coming from China, what is our strategy, or our differentiating factor, when we are selling these products into or formulations into other geographies? Thank you. So I got the first part of your question, which I'll address. ... products that we are manufacturing in Dahej. So we are targeting markets, initially where the registration has to be taken by the domestic distributor. But now we have already started working on registrations, in U.S., where we are connecting with various customers to reach our products in the U.S. market. Brazilian registrations are taking time. We have initiated those as well, but it will take a longer gestation period. Could you repeat your second part of the question? Yeah. So, there have been—I mean, aggressive supplies which are coming from China. So what would be our, you know, maybe our selling point in terms of approaching those newer geographies, where probably China is currently supplying the similar set of molecules? So China definitely has a significant cost advantage in most of the products because of the scale at which they operate. To replace China as a source in most countries in the short term is definitely not visualized. But yes, we are working as developing Dhanuka as an alternate source for some of the molecules where China is present. China is present with its products all across the world. We are trying to target both some of the African, Middle East markets, as well as the American markets, where we are trying to position our products favorably with the customers. Sure, sir. Thanks for answering all the questions and all the best. Thank you. Thank you. The next question is from the line of S. Ramesh from Nirmal Bang Equities. Please go ahead. Thank you, and good evening, Dhanuka ji. So can you talk about the contribution of the new products launched? If you were to exclude the new products, what would be the volume growth and the top line growth for this quarter? And how do you see the growth for the existing portfolio if you were to exclude the new products for the rest of the year? If we exclude the new products, there would be impact around 70%. You are saying the volume growth will be 30% this quarter? Yeah. What is the, you know, outlook do you see for the existing portfolio for the rest of the year in terms of top line growth? Around 15%. So you will get 15% plus the growth in the new products. That's the way to understand, right? Yes. That's right. What is your plan for further new product launches this year for the next nine months? See, in one is Miyako. We are going to launch in the quarter two, and Dinkar in quarter three, and one more 9(4) product in quarter three. So the second one you mentioned is a 9(3) product or? 9(3) in quarter three for Dinkar. Dinkar would be 9(3). Okay. And the third one is 9(4). Okay. Thank you very much- Yeah. Wish you all the best. Yeah. Thank you. The next question is from the line of Bhavya Gandhi from Dalal & Broacha Stock Broking. Thank you. Please go ahead. Yeah, yeah, thank you for the opportunity. So with respect to our MNC products, just wanted to understand, are we the sole supplier or are there any other, third-party distributors or, those companies also, formulators also supplying in the domestic market? So we are partnering with Japanese, American and European companies. Most of the American and European companies have direct distribution in India, so the molecules that we are distributing are co-distributed along with the principal company, and there is no exclusivity agreements with most of these companies. However, with the Japanese companies, when we introduce the product for the first time in India, we have an exclusivity period, which sometimes gets extended also as we continue to invest in the product and grow the volumes. So it is different for the Japanese companies, where we enjoy exclusivity for a period of time, and with the American and European companies, normally there is no exclusivity. So, what would be the period for this exclusivity? Is it like two, three years, 10 years, or if you can give some light on that as well? Initially, it starts from 3-5 years. Okay. How much would be the total revenue contribution from patented products that we co-market? Okay. See, sometimes this patenting thing can be over imposing. Yet, what happens is that many of our products, while we sell, are not all of them patented, yet the Indian regulatory system does allow some safeguards in terms of a new source registration, taking as much time of 5-6 years. So while our patented products will be few in the list, yet, by virtue of the regulatory system itself, we get adequate protection for a few years. Two, in the meanwhile, when we are able to develop the brand equity for these new introductions, farmer is more akin to use this tried and trusted brand from the house of Dhanuka more committedly, rather than changing it for his precious crop. Okay. I mean, if we were to put the specialty basket, I mean the protected ones as well as the patented ones, what would be the total revenue contribution put together? Not the specialty part. Not the specialty part, I mean the one where you can deal... The other players will have to delay their registrations and one where we have got some sort of patented molecules. So if you were to put that in one basket, what would be the total revenue contribution? Regulatory and patented put together? ... So something close to INR 500 crores. Okay, got it. Just one last thing, if I can squeeze in. Do we earn, what sort of trade margins do we earn when it comes to MNC products? Because, I mean, if the MNC is selling it directly, are we going to earn better trade margins because of the distribution that we have? Or, are our price not that competitive when it comes to pricing? Yeah. Just a point, just a few minutes back. In terms of, you know, many MNC products that we handle have over a period become generic or have become overly competitive in the face of various other competition. So as such, just being an MNC product probably is not a guarantee, but is a differentiator for sure for the customer. The margin ranges from 10%, 12% - 15% - 30% in various MNC products. Whereas with some of our MNC products would have margins way above 30% - 40%, 50% also. Got it. Fair enough. Fair enough. And just one, one last thing, if I am allowed to. Because of the Dahej plant, I mean, you know, our moat lies in the distribution and branded formulations, whereas, you know, manufacturing is a tough business. There are already lot many players. I mean, you already addressed it, but is it a right strategy in terms of capital allocation? Well, you know, selling branded products is an easy business, is probably not my cup of tea to say. Well, we have been able to do a reasonable job with our brand business is for sure. At the same time, you will see various other chemical plants doing a good job in the country. So each of these businesses required a lot of commitment, investment of money and time. We are here for a long haul and long run. We would really like to take advantage of the political, economic scenario of India plus one, the consumption opportunity in the country, the consumption opportunity globally from the Indian chemical manufacturing landscape. So we are here to stay and take advantage of all these opportunities. Perfect. Perfect. Thank you so much. That's it from mine. Thank you. Thank you. The next question is from... The last question is from the line of Archit Joshi from B&K Securities. Please go ahead. Hi, sir. Thanks for the opportunity. And sorry if I'm being repetitive. I missed the first part, wherein you had mentioned about 50% of our sales, coming in from herbicide products. Sir, was there anything different, during the quarter that you were able to sell more herbicides? And I recall this from, what we had experienced during COVID, sales of herbicides in the first quarter were pretty high, due to labor shortages. Is that, phenomenon, aberrant in nature, or was there something else? You can give a clarification. Thank you. We are happy for you to repeat that, if at all there is a repetition in my response also. Dhanuka is strongly positioned as a herbicide company because we have introduced some powerful herbicides over the last many, many years, thanks to our partnership with various Japanese companies. And in this quarter also, we introduced Purge, a very powerful herbicide, along with already existing very powerful herbicide portfolio. Government's impetus on making India Atmanirbhar in terms of oilseeds and pulses is a very powerful and unique opportunity. And if I may add, our current agriculture minister comes from Madhya Pradesh with a very long stint over there, which brings in focus towards soybean, a very important oilseed crop, and various other pulse crops there, which are important for Madhya Pradesh. Overall, farmer has significantly increased the acreages of oilseeds and pul, pulses, wherein Targa Super, Sakura, Purge, Tornado, some of the products which have found really good opportunity across the country, including Madhya Pradesh, Gujarat, Uttar Pradesh, Karnataka, Telangana, everywhere. In addition to that, significant push on increasing maize acreages, purely for economic reasons by the farmer, in interim water scarcity, increase for fodder, has also significantly boosted Sempra sales in maize pockets. So overall, you know, Q1 was heartening in terms of herbicide growth. Sure, sir. So in a nutshell, the increase in acreages that we saw had more [ceilings] for herbicide products, and we are having a strong herbicide portfolio. That would be suffice to say? Absolutely. Sir, thank you, sir. Thanks for the clarification. All the best. Thank you. If there are no further questions, I would now like to hand the conference over to the management for closing comments. Friends, to conclude, I would like to thank all our investors for your support and confidence in Dhanuka. With the transition in management, we have embarked on our next era of growth and business success. We continue to demonstrate our ability to overcome challenges and emerge stronger despite uncertain business environment. I reassure our stakeholders that we are committed to the task of transforming India through agriculture and will play an integral role in rewriting the future of a better and new India. Wishing you all health and safety. Thank you very much. Thank you very much, sir. On behalf of Antique Stock Broking, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.