Ladies and gentlemen, good day, and welcome to the Sequent Scientific Limited transaction update conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Abhishek Singhal. Thank you, and over to you, sir. Thanks, Raghav. A very good evening, and thank you for joining us today for Sequent and Viyash merger transaction update conference call. Today, we have with us Mr. Rajaram, Sequent's Managing Director and CEO, and Dr. Hari Babu, Co-founder, Chairman, and CEO of Viyash Life Sciences. The transcript for this call will be available in a week's time on the company's website. Please note that today's discussion may be forward-looking in nature and must be viewed in relation to risks pertaining to the business. We request you to kindly restrict the discussions on this call to the transaction announced. After the end of this call, in case if you have any further questions, please feel free to reach out to the investor relation team. I now hand over the call to Mr. Rajaram to make the opening comments. Thank you, Abhishek. Good evening, everyone. Today, we have the opportunity to throw more light on the announcement which was made on the 27th of September regarding the proposed merger between Sequent Scientific Limited and Viyash Life Sciences Limited. I'm really delighted that Dr. Hari Babu, the co-founder, chairman, and CEO of Viyash Life Sciences, is here on the call with me today. Dr. Hari Babu is well known in the industry for his experience and expertise in the area of pharmaceuticals globally. Over the last 35 years, he's been a scientist, a technologist, global CXO, and an entrepreneur. I'm also joined by Saurav Bhalla, CFO of Sequent, and Mr. Ramakant Singani, CFO of Viyash. This is a significant step in the journey of the company as we move forward on our Sequent 3.0 plan to secure a leadership position in animal health with end-to-end capabilities. The proposed merger will create a unique and differentiated platform to serve global markets and pharmaceutical clients. The combined entity will have access to over 150 countries with a strong R&D, IP, and product development capabilities, apart from state-of-the-art manufacturing facilities. The combined entity will have 5x higher R&D talent pool and 9x more in terms of US FDA-approved manufacturing facilities, which will form a strong operating backbone to serve our customers better. The entity will also have a more robust financial profile as reflected in its margin and balance sheet. The merger will be accretive to Sequent in revenue growth and margin in the very first year itself and de-leverage the balance sheet. The transaction would be at a valuation that is at a significant discount, in fact, 44% discount to the current trading multiples of Sequent. We believe that it will be value accretive for Sequent shareholders. The process we have followed to arrive at this announcement, as well as the swap ratio, has adhered to the highest standards of governance. Throughout the process, we have worked with highly reputed leading advisors and valuation agencies. The proposed merger is subject to receipt of customary statutory and regulatory approvals, including from shareholders, stock exchanges, NCLT, Competition Commission, et cetera. Upon the scheme becoming effective, all shareholders of Viyash will be issued shares of Sequent in the ratio of 56 shares of Sequent for every 100 shares of Viyash. The new shares of Sequent so issued will be traded at the National Stock Exchange and the Bombay Stock Exchange. I will now request Dr. Hari Babu to introduce himself and talk to us about the Viyash business and its outlook. Over to you, Dr. Hari. Thanks, Rajaram. Good evening, everyone. My name is Dr. Hari Babu. Of course, in the industry I'm known as Mylan Hari Babu. I've been with the industry almost 30 years. Of course, after completing my PhD in organic chemistry, started in API R&D, then I handled various functions, quality, regulatory, and joined in Matrix, let's say, early 2000. Grown, actually, with the company, almost 20, 25 years with Matrix and Mylan together. Started actually as head of tech ops, then head of quality, then India chief operating officer, CEO. Finally ended up as a global chief operating officer for Mylan. Where I have seen actually beginning of the Matrix, where there was a small company to the big global company, actually, where I handled almost 45,000 people actually supporting it. A lot of excitement. I did a great job. After that, decided to quit Mylan. Started Viyash sometime in 2019. Before starting, I debated myself. I actually debated with a couple of people, what should we do? How can we strategize differently since this market is so crowded? If you do same as what others are doing, how can you differentiate? How can you grow the company? We had actually a lot of debates and had a thought process to start these things. The intent of building the right quality company. The intent of building this company was, day one, PCS was, build the right company. Work with a small company execution capabilities, with big companies, regulatory quality, R&D, IP capabilities. That's how we thought we can differentiate the company. In that process, we acquired a couple of companies. One started with intermediate company, then a few API manufacturing facilities. We partnered with Carlyle. The reason with Carlyle partnering was actually to build a big platform. In this scenario, unless you have a scale, it's very difficult to grow. Also survive all downturns in between. Unless you have scale and financial strength, it's very difficult to do that. That's how we worked together. We partnered, we acquired a couple of other companies like SciMed. That was one of the biggest acquisitions. One of the formulation companies, Inmedex. All put together, we thought actually we can build a right integrated pharmaceutical company. That's PCS initially. First one, two years, this all was done in 2021. We completed all these activities by end of 2021. First two years, we spent a lot of time to understand these companies because they're different entities, different styles of working. We thought let's first understand and address whatever are the things required to build the right company. That's how we took almost two years to reassess, to rebuild the company. That's how we rebuild entire team, our senior management team. Entire team is new. I picked up personally from various industry. All pretty, actually very well experienced guys in Big Pharma. We started building the team, then we build R&D capabilities. Then most important to grow and differentiate all quality and EHS, R&D are very essential to differentiate and grow. That's how we spend a lot of time, a lot of resources first two years to rebuild these entities. Couple of divestments also is done, part of optimization. Then finally, we ended up having nine high-quality USFDA-approved facilities. All if you see, every facility is USFDA-approved. That's the minimum thing. Majority of API factories are approved by all other regulatory agencies. With that, I feel probably, actually, we have a strong platform build with respect to team, with respect to culture, with respect to R&D or quality. It's a fantastic job was done by team first two years. Build the right base at 2024. I feel actually this starting point for, yes, 2024 is the right base to grow. That's how we started growing from 2024. You can see the numbers how we have grown. We have a fantastic opportunity to grow further. We streamlined couple of things. Whatever we acquired, integrate business, we downsize somewhere. Wherever is a long-term opportunity, we try to build the business with high-end markets like innovators, backward integration, or actually the little more advanced intermediates for the new products. API, we stepped up a lot. API, we started growing very well last two years. API is the biggest vertical for us today. Formulation also, we started growing, of course, in between our headwinds. Actually now we started rebuilding that. With these three companies, we are able to do many things. One is, wherever we are strong on intermediates, we are able to do forward integration. Wherever we are strong in API, where it requires either forward integration to finished dosage forms or backward integration to intermediates, all that was initiated and a couple of things are done already or in the process of doing. All these things work pretty well. Today we have a strong base. We have a great customer base. If you see our presentation, we sell almost 150 countries. All kinds of countries we do that, whether it is highly regulated, developed countries or even the very low-end countries. We are able to compete every market. Okay. The regulated markets, we are able to compete with respect to IP or R&D skill set. At the same time, with the small markets, underdeveloped markets, we are able to compete with our cost efficiencies. It started growing to 150 countries, lot of products. You can see almost 60 plus products are commercial products. At least I can say five to 10 products are, we are the market leaders. We have good market share globally. It's very sustainable. It's not one-year market leader. It's demonstrate couple of years actually showing growth and sustainability on that. We have a strong product mix with large volume or mid volume, or technology-driven, all kinds of things. We have good product mix, commercial 60, 70 products APIs. Of course, another 30, 40 products intermediate and pre-stores we have about 30 ANDAs. All kinds of products and R&D, you must have seen that about 200 resources in R&D with high-end analytical capabilities is able to do 10, 12 products in a year. It's a fantastic journey so far, but I see even better journey near future. I strongly believe coming together with Sequent, we have a lot of synergies on various things like business development, expanding market, or utilizing better whatever we have capabilities like R&D or manufacturing. That I think is going to give a lot of synergies together. I think I'm very excited to work together. I see it's a big growth opportunities for company and of course at the end of the day it gives value to both of us and shareholders. With that, thank you so much, Rajan, to give this opportunity. Thank you, Dr. Hari. It's indeed a pleasure to have you here and have this conversation. I will now invite Saurav Bhalla, CFO to share the details of the proposed transaction. Saurabh. Yeah. Thank you, Rajan and Dr. Hari. Let me run through the deal structure and the merger ratio. You'll be happy to note we have done a very extensive due diligence and valuation exercise taking help of leading firms and best-in-class experts in domestic M&A as follows. Our deal advisors are JM Financial. Commercial diligence has been done by BDO & Company. Financial and tax diligence has been done by KPMG. Legal diligence and advisors are AZB & Partners. Valuation jointly done by KPMG on behalf of Sequent and PwC on behalf of Viyash. Fairness opinion has been provided by ICICI Securities. Based on the recommendations of valuer and fairness opinion providers and also an independent review by our board, the approved merger ratio, as concerned by the board, all the shareholders of Viyash will be issued shares of Sequent in the ratio of 56 shares of Sequent for every 100 shares of Viyash, based on the approved swap ratio. We believe this merger is structured to deliver stronger combined growth and deliver long-term value to all the stakeholders. The benefit would start flowing from year one and will keep on improving over the years with the various synergy effects coming into play. The merger is anticipated to conclude over next 12 to 15 months, subject to the various regulatory and other approvals required. In the indicated timeline, we would require key approval from stock exchanges, SEBI, our esteemed shareholder like you and NCLT, CCI and others. I would now request Abhishek to initiate the Q&A session. Yeah, we can start the Q&A please. Thank you very much. We will now begin the question and answer session. Our first question is from the line of Amresh Kumar from Geosphere Capital. Please go ahead. Hi, sir. Thank you so much for the opportunity, and congratulations on this transaction. Sir, I just wanted you to elaborate a little bit more on the synergistic part of the deal. How Viyash going to help Sequent and vice versa, given that what I understand is Viyash is largely a human API company and we are an animal health company. How are we going to help each other going forward? That would be my first question, sir. Do you have more questions, Amresh? You can put all of them together. Okay. If that's the only question. No. The second question is, what will be the role of our promoter going forward after this transaction is over? Sorry, just repeat the second one. What would be the? The role of our promoter, of the Carlyle after this transaction is over. Okay. You have two questions, right? Yeah. Thank you very much, Amresh. I'll answer this and I will also then invite if Dr. Haribabu has any comment. I think the first thing is that if you really look at the way we need to look at Sequent growth in the next 5- 10 years, there are clearly couple of shifts happening in the market. I think the first is that in the animal health space, there has been an increasing move from the growth of the livestock business and it's now moving more and more towards the growth of companion animal business. It is really the pet care piece of it. Some years ago, 40% of the developed market used to be in pet care, today it's well over 50%. Therefore, as the market for companion animal treatment keeps growing faster than what it is for farm animals, we also were looking at what do we need to do to build the necessary capabilities which are required to win in such a market. It is a fact that the product treatments, et cetera, which are required for companion animals, increasingly are converging and are becoming closer to the kind of capabilities which are required from human pharma. Clearly we need capabilities in R&D, chemistry, manufacturing, which at this point of time are not there within Sequent adequately. That's really the first piece, that we've been looking for an opportunity to find a partner for this. The second part of it is that even in the farm animals space, increasingly there is a lot more stringent demand in terms of requirements from regulators. Also that you need far more competitiveness in terms of cost of supply. For Sequent, it was important to build capabilities where we could be more competitive on costs by in-housing as many of our intermediates and early-stage requirements. When we look at this, clearly we see a synergy with a company like Viyash, because Viyash is a company which has a very differentiated place in the pharma market. It has a huge amount of capabilities in R&D. It has a track record of launching innovative products, working with some of the best companies in the world, and at the same time also having a large manufacturing base with US FDA facilities. Clearly that's something which comes in very useful for Sequent's ambition. On a standalone basis also, Viyash is a fast-growing company of equal size as Sequent, and which has established itself in a niche and differentiated way in the overall human pharma market. The last piece of it, of course, is that financially also it is a very attractive deal because if you really look at this merger in every respect, it is accretive on revenue, it's accretive on margin, it de-leverages our balance sheets and at the same time, we've also completed the share swap at a very comparative discount because it is significantly discounted to the current trading multiples. I think it's about 44% discount to the current trading multiples of Sequent. Even for all our shareholders, it is a very value-accretive transaction which is being proposed. I think when you put all of this together, there are clearly big advantages for Sequent, and of course, there are also significant benefits for Viyash as a company when it sees an I'll call Viyash Doctor Hari to elaborate a bit on what is it for Viyash in this. I think Rajaram addressed most of it, but I'll just add a little bit to that. As I mentioned in my introduction, after doing a lot of hard work and research and optimizing Viyash, we built a fantastic platform and started growing from 2024. You can see that 2024 to 2025. With our strong R&D capability, manufacturing network and manufacturing facilities, FDA approved and all other approved things. We see that growth continued strongly from FY 2024. It will continue, whatever you can see, from 2024 to Q1 FY 2025. That growth will continue definitely next three to five years, kind of things. Of course, we are continuously adding products or technology platforms. Coming to the synergies, as Rajaram indicated, there are several synergies to Sequent. The biggest thing was R&D support from Viyash, manufacturing network to Sequent where we can add a lot of value for backward integration capabilities. When it comes to Viyash synergies, whatever customer base Sequent is having today, most of the API business goes to innovator business. That relationship can add value to Viyash. That's how we see the big synergies. In addition to the management teams, of course, support each other. There's a lot of synergies other than general synergies like material procurement and manufacturing scale utilization or optimization. All these are actually synergies. Other than that, there's a big synergy comes from the business perspective, customer relationship for both the companies. We do few products with few innovators, whereas Sequent do their few other innovators, our large focus is going to be on that business. We see good synergies, at least midterm to long-term perspective. Thank you, Dr. Hari. I come to the second question, which is the role of the promoters, which is Carlyle. Yes, I mean, Carlyle are the promoters in both these companies, and I think the fact that they have supported this proposed transaction at the board level indicates, of course, their long-term commitment for both the companies to grow the business when they come together. I think the nature of the terms of the transaction also reconfirm that there's a lot of value which gets created to all our shareholders on this. Yeah. Maybe we go to the next question. Is that fine on this? Yeah. That's very pretty clear. Thank you so much. Thank you. Yeah. The next question is from the line of Ratika, who's an individual investor. Please go ahead. Oh, hello. Hello? Yes, Ratika. Hi, we can hear you. Yeah. Thank you for the opportunity. I had a question around the outlook of the capacity and CapEx requirements for Viyash and are all the plants utilized? Also, what about Sequent? If you can highlight the capacity utilization at Sequent as well. I think I give to Dr. Hari. Let me start, Ratika. Viyash current capacity utilization is around close to 30%. We don't see any additional CapEx requirement for the near future. Of course, a little bit is required for optimizing the capacities to suit for new products. We don't expect a big CapEx in the near future to manage Viyash. Of course, when you combine these companies, when you start working together, if there is additional requirement required for Sequent, we need to work out. At this point, we don't see any much CapEx requirement for next, I can say two years at least. Yeah. Thank you, Ratika. I think that Dr. Hari answered on behalf of Sequent as well. That's the situation. Yeah. Yeah. Yeah. Do you have any other questions, Ratika? No, thank you. Thank you. Okay. Thank you very much. Yeah. Thank you. The next question is from the line of Nikhil Shetty from Nuvama Wealth. Please go ahead. Yeah. Thanks for the opportunity and congrats for this merger. Prima facie, this looks interesting. I have few questions. What is the synergy benefit in terms of cost? I can understand some of the raw material which we are procuring from others probably will procure from the emerging entity. What kind of a cost benefit we can see in terms of the EBITDA? My second question is on the amortization part. Viyash have a substantial intangible asset, I believe, because we don't have access to the balance sheet, but we can see the significant amount getting amortized every year or every quarter. If you can throw some light on that. Thank you. Let me answer first question, the cost synergies. I can say short term where we are going to work, there could be some procurement synergies since 2 companies are buying maybe some common raw materials. That's one actually, maybe low-hanging savings. The biggest saving what we are looking, as I said, are Indian manufacturing capacity utilization. When you say procuring intermediates from Viyash, okay, looking at the regulatory scenario, of course, we need to do little more deep dive, understanding what kind of markets required, how long it takes. Once we do that, definitely, it's going to be good synergies that way. Sequent can benefit at least 100 basis points or 200-200 basis points kind of thing. We see midterm and long term, it's going to be the good synergy. Short term, we need to work out because Sequent as well as Viyash is working totally under regulatory environment. You may know sometimes regulatory takes little longer time, but we are going to work together how fast we can get there. Yeah. I think the second question is maybe for Nikhil is. Maybe Ramakant can take it. Sure. Nikhil, as you rightly mentioned, yes, we do have significant amount of amortization in our P&L, and we do have this amortization continuing for about two years. FY 2025 and FY 2026 will continue at around that INR 90 crore, INR 95 crore is the amortization per annum. FY 2027 will have back to period. We are left with about three years and roughly a quarter more in terms of cleaning up the amortization model. Okay. Thank you, Nikhil. I hope that's okay. Yeah. Sure. Sir, if I may, please one more question. Basically, even if you look at the overall EBITDA, I believe, for both the businesses, we are targeting roughly 20% odd EBITDA margin in couple of years. I believe because of the cost benefits and operating leverage probably, and with the better product mix, probably we able to reach that. What about the bottom line part? I'm concerned more about the bottom line part, how it is going to look like. Are you saying at a post-tax level? Yeah. Yes. Tax. Yeah. I think that's really on the, Venu, you could probably give your sense on that. Yeah. Generally with the EBITDA which we are saying, we are also expecting it to move to higher teens and under in which you are saying, and further the benefits should flow in. That will certainly flow in the PAT level also. In the PAT, we'll see substantial improvement, which is what we are projecting this year. It will kind of flow and mirror. Maybe I can add a few things. If you see both balance sheets, one is amortization, whatever tangibles, once you close the account. We are going to be a debt-free company. Numbers we go and invest today. Okay, looking at our EBITDA thing, it can be debt-free very soon. Our financial cost is going to reduce substantially. The depreciation for the size of the company FY 2025 together three and 3,000 fourth, whatever the depreciation other than this one-time amortization, it's not much. With that, definitely PAT levels will continuously grow. In addition to that, both sides, I think there are some accumulated losses. We need to work on that, but I think it's going to be a good PAT percentage as well as it's going to generate good free cash flow, I can say that. That's where we can invest on various things. Okay. Whether organic or inorganic expansion on that. Yeah. Thank you, Dr. Hari. Can you go to the next question? Thank you. The next question is from the line of Bhavesh Gandhi from YES Securities. Please go ahead. Yeah. Thank you for the opportunity. I have two questions, one to Dr. Hari Babu, and then the second one to Mr. Rajaram. First on the Viyash margin side. If I look at Viyash as a business, and it was primarily mentioned, its API is the largest vertical. If you look at EBITDA margins today of Viyash and compare it to some of the other listed entity API companies, then clearly I think there may be a room to take up EBITDA margins of Viyash towards the 20% range. For that to happen, what is the nature of products that we can introduce or kind of supply on a B2B basis to customers? Any sense on that would be helpful in terms of new product launches and especially on the complexity and capability side. Second question to Mr. Rajaram. With this merger, we are kind of essentially big picture combining an animal, pure animal health with a pure human API. Is this a kind of a tacit acknowledgement that in a way animal health is kind of only so much to offer on the product animal side, like you said, things are shifting to companion and those things. Essentially as equals business model stands today, would the merger is kind of an indirect kind of harbinger of things to come on the animal side? Yeah, those were two questions from my side. Thank you. I think I'll answer the second one first just because I think that's very clearly this merger is in fact a reconfirmation of the fact that we are hugely confident about the future of animal health. I think what is being done through this merger is to build the necessary capabilities and capacity which is required to turbocharge that part of the company, vertical which is there. As I said before, it is important that we begin to invest in R&D and manufacturing capacity if we want to win in the way in which the market is moving in the future. It's something that obviously will happen in five to 10 years. In the short term, we will continue to work on our current plans. In the long term, we need such investments. The proposed merger is a part of our business substantially. I don't think it is in any way an acknowledgement of anything other than the fact that we want to recommit ourselves in the right way to the growth in animal health. Yeah. Maybe I just give Dr. Hari Babu on the Viyash margin question. Coming to Viyash margin, if you look at last three, four years, Viyash gross margins and EBITDA margins, Viyash operate three segments. One is intermediates, finished dosage forms and API. If you look at our API segment, gross margins is much better than ours actually compared to companies. Since we operate three verticals, that's where actually we are moving from actually the low-end margin business to high-end business. That's how slowly intermediate API business is growing. Past two years API business has grown almost double, whereas intermediate business we optimize. Intermediate business is going to be more focused on utilizing for API requirements. Remaining business is going to move to rather high-end business like trying to work with innovators or complex products, advanced intermediates for new products. That's how intermediate business is coming down. API business is growing. Slowly gross margins are improving and EBITDA percentage also is improving. Other fact is, since our capacity utilizations are gradually increasing, our OPEX percentage is slowly coming down. That's where we can see better margins coming future. That's how you can see FY 2024 from 12, 13% to it's reached to even 17%. We are pretty confident it's going to grow. I am very confident actually this gross margin as EBITDA will grow further. API, I can say we are better than even generic industry APIs. Mix is changing. Gradually, we are moving to new products more than API. If you see a lot of new products are coming in our pipeline. Whatever we did last two, three years, R&D development, large number of products filed, we started getting approvals now. Really, approvals started from last two quarters. Every month, every quarter, we see at least one or two products, and we see the good opportunity to grow and improve margins there. I hope I think that answers your question. Yeah. That was helpful. One more follow-up to that, to the API business. If I look at the presentation, broadly, I think top five, six products for Viyash contribute about 30%-33% of revenue, if I'm not mistaken, and broadly INR 300 crore out of INR 700 crore revenue. It implies that there is a kind of a long tail of products presently on the API side. Post this, would there be any rationalization of products? Any removing of low margin products in API, which you wish to exit? Are there any margin levers from that factor? Let me put it two ways. One is I think that five products, 30% is the two together. Correct me if I'm wrong. API formulation, the top five products for the company, few formulation products, few intermediates, few APIs. That's where it contributes 30% of the overall revenue. Pure API itself, top five products, it contributes about 40% at least. Our API products, we have 60 commercial products. I can say majority products are gross margins are pretty good. Our uniqueness in this business is the product, it's not very high volume product where it contributes 10%, 20% for many products. Margins are good, competition is low, but margins are pretty good. I don't see any optimization is required on that. Most of the products where we had little low gross margins, we worked and improved a lot. Whatever products we have, I think it's fantastic. Even, I think top 15 products contributes around 60%, 70%. Okay. Because these products wide spread out, there are few validation products. When you see quantities, all these things put together, it's working like that. I don't see any products we are going to take out. Whatever products, two, three products we took out last year, whatever we are doing, all are profitable products APIs. When it comes to intermediates, as I told you, we are optimizing intermediate business. We downsized to almost all. When we acquired intermediate business was INR 500 odd crore. Now it's almost all. We are trying to move into better gross margin products. Okay. Thank you. Fine. I'll join the queue. I had one more. Thank you. Okay. Can you go to the next slide? Thank you. Thanks. The next question is from the line of Prachi Sharma, who is an individual investor. Please go ahead. Hello. Good evening, sir. Just two questions from my end. I just wanted to know what will the management structure be like for the combined entity? My second would be if you could highlight maybe what could go wrong or what are the risks associated with this merger. Yeah, that would be really helpful. Thank you, Prachi. I think clearly the theme of going ahead is continuity. I think all the management is going to continue, fully committed into this role. This is a very complimentary merger, yeah, which is proposed and clearly we see going ahead, everyone in their expertise adding value and going ahead on this job. We see the continuity of structure. Of course, as we build this over the next 15 months, there will be some necessary structural adjustments which may need to be done to suit whatever is the requirement for the future. Otherwise, right now the focus will be on continuity and making sure that we take advantage of this merger to build the business bigger and faster. On the second point, risks to this entire thing. I think, clearly, there is a lot of activity in both the companies, and the risks could, as I see, could be largely around being able to execute well. Yeah, I think that's really the principal thing that we all need to make sure that all the plans that we have get executed well. Dr. Hari, anything from your side on these two? I don't see anything that could impact. There could be some material risks. I don't know what actually can go anywhere regulatory scenario. Looking at two entities where there is no overlap, whether it is market or product, we don't see any risk from that perspective. Going forward, since both entities are growing strongly own way, and the risk could be getting synergies actually what extent when, because that requires external approvals. Since we're handling anti-regulatory business, whatever we anticipate the time frame, that could be the risk. That's where Rajaram mentioned execution is so critical to get there. Thank you. Can we go to the next question? Okay. Thank you, Prachi. Thank you. The next question is from the line of Bharat Sheth from Quest Investment. Please go ahead. Hi. Good evening, sir, and congratulations to you and Mr. Haribabu Bodepudi, as well as the team of both the companies for creating such a large platform. Hello? Hello? Yes, Bharat. Hi. Thank you. Good to hear you. Thank you. Good to see Thank you. Good to see you. Yeah. Thank you. We can hear you. Yeah. We have guided around, say, 12%-13% kind of a growth and high teens EBITDA by 2027. Which is being around INR 2,000 crore of top line and a 20% or around 3%. If I have to take it further with combined entity, how do we see, if you can give some broader picture, size, what would be the top line and EBITDA for FY 2027 or FY 2028, whatever comfortable you are. If you can give some, because qualitatively you have said all the things. If you can try to work out in quantitative number, how do we really see this merged entity? Thank you, Bharat. Clearly, as we have said, it is accretive, both in terms of revenue and in terms of margin, and that should continue. Right now we have been guiding that the top line will be growing around 12%-13% and the EBITDA would be more closer to high teens by 2027, 2028. What we expect is that after the merger and we really make everything executed well, it should definitely be 150-200 basis points higher than what we have guided, yeah, at any point of time. Of course, from a top-line point of view, therefore it should be closer to INR 4,000 crore around that time. We, of course, haven't built in synergies. We haven't built in some other plans which could be taking this higher. I think at this point of time, we can be confident enough to say that given that in the very first quarter, both the companies together are already at annualized INR 400 crore-plus run rate on EBITDA. We should be expecting that by 2027, 2028, we would be in the 20%-odd range for EBITDA margins and of course, INR 4,000 crore plus in the area of top line. These things have to be worked out still. It'll clearly be accretive and we'll get some benefits which will come later from synergies. Is that fair understanding that even depreciation in 2027, 2028 as well as the interest will come down significantly from what current level merged entity has? Yeah, I think Dr. Hari has made that clear, because we will be moving to becoming a debt-free company soon, and that therefore will obviously reduce our finance costs, et cetera, which are required at least for the current plan that we have. Obviously, on the other aspect as well, the other lines would improve as we come closer to 2027, 2028. Thank you and all the best, sir, and look for your longer-term association. Thank you. Yeah. Thank you, Bharat. The next question is from the line of Kaustubh Bhutra from VMSPL Capital. Please go ahead. Yeah, thank you so much for taking my question. Basically, I had two questions on opportunities. The question has always been when Sequent was only Sequent that when will Sequent enter the U.S. markets in terms of animal formulation? I wanted to ask, does this merger help us in any way enter the U.S. market in terms of animal formulations? That's the first question. Is there a plan around that? The second question is, now since this entity will be merged, can we participate in a big way over the next many years and be key beneficiaries of the BIOSECURE Act in the U.S.? These are my two questions. Answer the first part. I think, at this stage, it's too early to say whether we have a clear entry strategy for the U.S. on animal health formulation. Of course, both the companies are fairly strong in the U.S. market. I mean, the Viyash business has an operation which is there in the U.S. Those are things which I think over the next period of time, both the companies will work hard on what are some of the opportunities. It's not something we overlook right now, but it has to be taken more carefully by looking at it. I think on the biosecurity piece, Dr. Hari will answer and on the U.S. piece he will answer. I think BIOSECURE Act, of course, you guys know still it has to be passed from senator thing. If it goes through, I'd say that's one of the good opportunity for Sequent. There is large companies, they're looking alternative. Majority is coming from China. That's why they're looking the alternative. India is the best alternative, of course. I think that's going to play a big role if everything goes well for Sequent since there's a large backup of Viyash on R&D as well as manufacturing. I think that's the opportunity, but it's very difficult to quantify when or how, actually. Maybe going forward 5-10 years, seven years, it's going to be one of the great opportunities for this group together. Now together it's visible in a better way. All these things, BIOSECURE Act, most of the things going to go to visible companies where there's a strong R&D manufacturing backup. For that, we will have that. That's a good opportunity, definitely. We will continuously work on that. That's one of the pieces to do this. That's one of the great expansion opportunities to get with that. Coming to the second one, Sequent entering into the formulation, we are revisiting our human health formulation also. With that, we'll work out the strategy. What kind of things required for Sequent U.S. entry? Since this merger entity is going to be a strong cash flow. Basically, to enter here, it requires little long registration period, and its investment is also a little high because they have to build the right facility and approve all those things. Looking at all those things, investment versus opportunity, definitely come back on that. We are going to do strategy exercises soon. Maybe, I don't know, before or after actually, we'll do mostly probably immediately after the closing. We'll come up that. We want to do that, actually we'll just assess investment versus opportunity. Thank you so much for those detailed answers. Best of luck. Thank you, Kaustubh. Thank you. Ladies and gentlemen, we'll take that as our last question for today. I now hand the conference over to the management for closing comments. Okay. Thank you very much. For attending this call. It is a very exciting period in the journey of both the companies, and we look forward to keeping you updated as in the coming quarter calls on how the entire merger transaction process is going, as well as on the performance of the two companies. Thank you for staying with us, and thank you for your confidence. Good evening, and have a good day tomorrow. Thank you so much, guys, for asking questions. Definitely this is going to help us to refresh and rethink whatever is required. Looking forward to work with you all again. Thank you. Thank you very much. Thank you. On behalf of Viyash Scientific Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.