Ladies and gentlemen, good day and welcome to SeQuent S cientific Limited Q2 and H1 FY 2025 earnings 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. Thank you and over to you, sir. Thank you, Del. A very good morning to all of you and thank you for joining us today for SeQuent Scientific's earnings conference call for the second quarter and half year ended FY 2025. Today we have with us Mr. Rajaram, MD and CEO, SeQuent Scientific, Dr. Haribabu, Whole Time Director and CEO, Viyash Life Sciences, Saurav, CFO, SeQuent and Ramakant, CFO, Viyash Life Sciences to share the highlights of the business and financials for this quarter. I hope you've gone through our result release and the quarterly investor presentations which have been uploaded on the website as well as the stock exchange website. The transcript for this call will be available in a week's time on the company's website. Please note that today's discussion will be forward-looking in nature and must be viewed in relation to risks pertaining to our business. After the end of this call, in case you have any further questions, please feel free to reach out to the investor relation team. I now hand over the call to Rajaram to make his opening remarks. Thank you, Abhishek. Good morning, everyone. A very warm welcome to everyone on the call for the quarter two FY 2024-2025 results. This is a significant quarter update as we share the progress on the performance of SeQuent and also update you on the strategic merger with Viyash Life Sciences. I'm delighted to be joined on the call by Dr. Haribabu, Whole Time Director and CEO of Viyash, and also joining on this call is Saurav, our CFO of SeQuent and Ramakanth, CFO of Viyash. We are now halfway through this financial year and I'm happy to share that we continue to improve our performance in most markets and businesses. Coming to the performance of the quarter. In quarter two FY 2025, our consolidated revenues came in at INR 368.6 crores during the quarter, which translates to a revenue growth of 6.6% when compared to the same quarter last year, that is quarter two FY 2024. At the end of the first half, revenue stands at a healthy 11.7% growth versus the first half of last year. This growth continues to be quality growth which is seen in the margin and EBITDA numbers. If you look at the EBITDA pre-ESOP numbers for this quarter, it came in at INR 44.7 crores, which represents nearly a 70% growth over quarter two last year. When we consider the first half of the year, the EBITDA comes in at INR 93 crores, which represents 160+ percent growth over the first half last year. We are trending well not only in terms of consistent improvement, but also in line with the broad guidance that we have given. While Saurav will go into more detail, I will share some qualitative highlights and more details are of course available in the investor presentation. When we look at the external factors, there is always the geopolitical and macroeconomic aspect to keep in mind. We have a strong presence in the developed and regulated markets of U.S. and Europe where there is general stability. We therefore see a favorable environment for our business. Our formulations business which is spread over many countries has had a good quarter and a good first half for the fiscal year, growing in double digits overall and in most geographies. We are expanding our phyto- solutions range to more markets and have also introduced new products for companion animals. There has been strong growth in Europe, especially in our distribution business, and we are beginning to slowly get price increases in an inflationary environment. Coming to emerging markets, we are seeing a more predictable and steady currency scenario in Turkey and the government actions are also more calibrated and predictable. We have therefore accelerated our efforts to launch a few more products in the coming year apart from taking judicious price increases. As we indicated earlier, we have received EU GMP certification for our manufacturing facility in Turkey. We have started validation of the first lot of injectable products for exports from this facility. Our exports from Turkey help us in hedging foreign exchange requirements in addition to driving operational efficiencies. This has been a good first half for exports from Turkey. Our business in Brazil, which had seen flats to declining performance last year, has begun growing this quarter as we refresh the product portfolio and expand to other LatAm markets. As we have shared earlier, we have expanded our formulations team in India and this is the first full quarter of that impact. The India formulations business has also delivered a strong double-digit growth. Now coming to the API business. API revenues for the quarter were slightly below plan as we had to postpone a few quarter-ending shipments to carry forward to the next quarter. Our margins continue to improve and we have successfully completed many customer audits for continuing businesses as well as for commencing new supplies. The plants in Vizag and Mahad have received important recognitions for safety and quality from government authorities, customers, and industry bodies. Some details are available on this in the investor presentation. It is here that I wish to bring your attention to the proposed merger with Viyash Life Sciences. The merger will have a transformative impact on the company in terms of R&D, supply chain, and manufacturing. The combined entity will have significant scale. For instance, a six-fold increase in R&D strength and a five-fold increase in capacity. Viyash is a very strong performer in all aspects of the business, and you would have seen in the investor presentation the excellent results of Viyash on a standalone basis, as well as the impact on the combined entity. Clearly, this is a highly accretive merger, which will drive strategic advantages for the business. Dr. Hari will later provide a more detailed perspective on this. We are now poised for accelerated growth while improving margins. There is increasing interest in animal health, both for production animals and for pets. In addition, there is a growing demand for India to participate as an important source of products and services, be it APIs, formulations or CDMO opportunities. We remain focused and confident that our actions and plans will deliver consistent, profitable, and sustainable growth in the coming years. I will now hand over to Saurav to share the financial details of SeQuent, and then invite Dr. Hari to share the highlights of Viyash performance. Over to you, Saurav. Thank you, Raja, and good morning, everyone. It's a pleasure to be here today to provide key highlights into our financial performance for both the Q2 and H1 FY 2025. We'll also update on the progress of our strategic M&A announced for the composite scheme of amalgamation with Viyash Group and SeQuent Research Limited, one of our wholly-owned subsidiaries, which marks an exciting phase in our journey towards long-term growth and value creation for all the stakeholders. Starting with the SeQuent financial highlights. For Q2 FY 2025, total revenue is at INR 3,686 million, with EBITDA pre-ESOP of INR 447 million. For the first half of FY 2025, our total revenue is INR 7,589 million and EBITDA is INR 930 million. I'm pleased to report a strong year-on-year growth of rupee 6.6% for Q2 and 11.7% for H1 FY 2025. Our EBITDA growth is particularly impressive, with a 70% increase in Q2 and a 161% increase in H1 on a year-on-year basis. These results reflect our ongoing commitment to drive operational excellence and profitability. Q2 FY 2025 revenue highlights. In Q2, our formulation business generated INR 2,836 million in revenue, accounting for 79% of our total revenue, while API business contributed INR 773 million, accounting for 21% of our top line. Our European operations delivered robust growth with revenue of INR 1,335 million, reflecting a 5.5% year-on-year growth on a constant currency basis. Emerging markets reported revenue of INR 1,160 million, up by 26.5% year-on-year basis in constant currency. This growth is driven by selective price and targeted price increases and volume recovery in our Turkey market, which is one of our key global formulation markets. The Indian formulation business posted revenue of INR 341 million, reflecting a strong 25% year-on-year growth. Gross margin improvements. We are pleased to report an improvement in our gross margins, which increased by 190 basis points in Q2, rising from 45.1% to 47%. For H1, the margin improved by 265 basis points from 43.4% to 46%. This growth can be attributed to several strategic initiatives, including sales mix optimization and implementing targeted price increase across geographies. Cost optimization. In line with our focus on improving operational efficiency, successfully reduced operating expense despite facing inflationary pressures across geographies. We achieved a 1% year-on-year reduction in our operating expense for both Q2 and H1 respectively, demonstrating our disciplined approach towards cost management. EBITDA margin improvements. These actions have led to a significant improvement in our EBITDA margins pre-ESOP, which increased by 452 basis points in Q2 from 7.6% in Q2 financial year 2024 to 12.1% in Q2 financial year 2025. By 700 basis points in H1 from 5.2% in H1 financial year 2024 to 12.3% in H1 financial year 2025, reflecting our continued focus on driving profitability. Other income and financial items. During the quarter two, we recognized a gain of INR 31 million on the transfer of leasehold rights for our Tarapur facility in India. We also recorded a net monetary gain due to impact of hyperinflation in Turkey as required as per Ind AS 29. Balance sheet highlights. On the balance sheet, we show a very modest increase in working capital, which rose to INR 425 million, up from INR 4,201 million as of 31st March 2024. This increase reflects a strategic decision to support the planned growth in our Turkey and Spain business, resulting in inventory levels for the short term. In terms of leverage, our net debt to EBITDA ratio improved to 2.3x as on 30th September 2024, compared to 3.55x as of 31st March 2024. On absolute basis, our net debt stood at INR 3,774 million, a slight decrease from INR 3,788 million as of 31st March 2024. Our improved leverage position gives us capacity to manage future business growth investments and navigate any potential economic uncertainties, positioning us well for long-term growth and value creation for all our stakeholders. Moving on to update on our M&A progress. I'm pleased to report that we have made good progress on the composite scheme of amalgamation. This scheme has been approved by our Board of Directors, involves a merger of Viyash Life Sciences Private Limited and its subsidiaries, as well as SeQuent Research, a wholly owned subsidiary, SeQuent Scientific Limited. The completion of the merger remains subject to necessary regulatory approval, for which the process has started and is progressing well as per the plans. Here are a brief timeline of key milestones achieved as on date. Board approved the scheme on 26th September 2024. BSE filing of the scheme was done on 16th October 2024, and the scheme has got listed on the BSE website. NSE filing of the scheme was done on 17th October 2024, and the same is listed on NSE website. In addition, we have also started the process to relocate our registered offices as follows: SeQuent Scientific Limited from Thane to Hyderabad, SeQuent Research Limited from Bangalore to Hyderabad. For the above merger process, we incurred a cost of INR 43.2 million during Q2 and H1 of FY 2025, which are accounted for and disclosed as an exceptional item in the reported financials. In summary, our strong financial performance in Q2 and H1 highlights the success of our strategic initiatives, operational efficiencies and continued focus on profitability. Progress on our M&A activities further strengthens our position for long-term growth and expansion. We remain dedicated to delivering value for all our stakeholders, and we are confident in our path towards sustained growth. With this, I now hand over the call to Dr. Haribabu to share further details on the performance highlights of Viyash. Thank you. Thank you, Saurav and Raja. Good morning, everyone. I'm very glad to share Viyash financial performance and also strategic initiatives today. Coming to financial performance, Viyash recorded strong performance in Q2 FY 2025. Our revenue grew by 10% year-on-year to INR 363 crores, and strong EBITDA growth by 33% year-on-year to INR 63 crores. Viyash had EBITDA margins of 73%, with improvement of almost 3% year-on-year. Coming to first half of FY 2025, Viyash revenue grow by 5% year-on-year, and again, a strong EBITDA growth by 30% year-on-year. Viyash had a strong first half 2025 EBITDA margins of again 17.2%, which is almost improvement of 3.3% from last year. We also generated INR 100 crores free cash flow. I think it's the big achievement of this year, mainly driven by optimization and working capital, and also low CapEx. As we mentioned earlier also, we have a strong infrastructure in manufacturing, and also we have some free capacity. That's how we were able to reduce the CapEx. Our net debt to NTM EBITDA ratio is 0.7%, even after actually investing to acquire the Symed residual stake in first half. The financial performance is driven mainly by focusing on high margin API products, and also as we mentioned earlier, we rationalized couple of intermediate business, which are not sustainable products, and also the continuous cost optimization of various projects, both APIs and intermediates. Business growth is mainly supported by investments, what we did last couple of years, where we did a lot of investments and resources in R&D as well as operations. With that actually started resulting now new product filings as well launches. I think these are the recorded filings first half we are able to do 19 products globally because 17 are API and two FDFs we filed all over the world, start from U.S., Europe, China, everywhere in the world. Also we were able to launch two products in first half. The second main key focused area, where we did last couple of years, innovative business. Even though we were doing innovative business for their life cycle management. With our strong R&D strength and operating platform, we are able to develop two more innovative business and after struggling last two to one and a half years of hard work, now we are able to validate and supply validation quantities for two innovators. One is API, we did last quarter, and also we did one intermediate last quarter. These two are basically part of their life cycle management, where they do a large volume commercial products. We expect approval of these things may start from maybe next one to three years, because it requires a lot of regulatory filings from their side and it's going to generate business from after one year intermediate. Most of the API business is going to generate maybe after two years. In continuation to this, of course, we have few products also in pipelines, strategic tie-up with innovator as well as platform certificate players. As we continuously mentioned, this is a R&D-focused company. We have always strong product portfolio and pipeline. Today, at any point of time, today we have 35 products in our pipeline, and we completed nine products validations in first half. With our regulatory and quality focus, we were able to manage multiple audits continuously. I think last six months, there were 99 customer audits from various countries, and our team was able to handle successfully all audits. Also, we have received two clean EIRs from U.S. FDA, which was audited last quarter of FY 2024. These are the two clean EIRs, and also we are expecting few more inspections soon. Our team is fully geared up to manage all those things. First half of FY 2025, we have received six regular approvals, two in U.S. and three in Europe. These are mix of both U.S. FDA as well as couple of CEPs. Also we received one product from China. Diverse revenue from strong portfolio. Our portfolio is always, we say it's differentiated from all other generic companies. That shows actually our strength of sustainability, maintaining the profits. Our top 10 products contributes almost 62% of our API revenue. This is mainly because of our products are either innovative-based or little bit complex. Also we are able to maintain sustainable growth because of fully backward integrated and complex products. These 10 products, if you see last two years from FY 2020 to 2024, it has grown over 20% CAGR last two years. Also out of 10 top APIs, six products we are global leaders with 50%+ market share. Our portfolio is always either complex or fully backward integrated, with high share of revenue from regulatory markets. Most of our commercial products, we are very strong in regulatory. That's how we are able to sustain the gross margins. Innovators relationships. We have strong innovator relationship. I think we have four, five innovators always we do business with this mostly part of their life cycle management. We are continuing to do both innovators as well as strong relationship with innovator companies. Team, our team is very strong, is all our globally experienced team and average experience, I can say more than 20, 25 years, each one. Most important, all these guys are very well exposed to every global market to handle either R&D complex development or manage highly complex regulatory environment. Also business team is very qualified team, managed all over the world. Of course, all our quality and regulatory teams are pretty strong globally. With this, let me update little bit about our combined performance of merged entity. For Q2 FY 2025, combined revenue of the two entities grew by 8% year-on-year. Most important, EBITDA grew by 46% year-on-year. The combined business had an EBITDA of INR 108 crores with 14.7% margins with 380 base points improvement year-on-year. Going to first half of FY 2025, combined revenue of the two entities grew by 9% year-on-year and EBITDA grew by 67% year-on-year. The combined business had an EBITDA of INR 214 crores with 14.6% margins with 510 base points year-on-year improvements. The combined net debt to EBITDA ratio is 1.4x, and it's going to improve continuously. As we had indicated previously, the merger will create a global integrated end-to-end pharmaceutical business, both in animal health as well as pharmaceuticals, human health. The combined business will have, as Rajaram mentioned earlier, it's 6x larger R&D spend, R&D team with almost 200 people in Viyash, and 5x more capacity and 10 more years of FDA approved sites. As you guys know, Viyash, all our sites are fully FDA approved sites. We believe there are potential synergies in four core areas. That's the strength of course, Viyash and SeQuent. The first one is the manufacturing with the strong capability of Viyash manufacturing and procurement. That's where actually we can have large synergies for SeQuent. Also business prospects too. Since both companies are having relationship with Big Pharma companies, including innovators, we strongly believe we can expand sales footprint for both companies. R&D with Viyash coming in, strong R&D, this is going to help SeQuent a lot in R&D perspective to develop new products as well as launching. Others, of course, indirect costs. Since our base is going to grow largely, this indirect cost, direct procurements, all is going to have large synergies. Of course, we started putting together what kind of synergies, and we'll start acting very soon on those things within the regulatory purview. As Saurav mentioned, merger scheme has been filed already with exchanges. We started addressing their queries, and we expect this maybe next 12 to 15 months, as we explained earlier. I think it is on track. With these things, I can say with the combined platform, we are going to have a strong business potential. We started working together, of course, within the regulatory purview. We are going to put together what kind of synergies, when can we act, when we are going to see those synergies will come to you guys soon. With that, thank you so much, and we are happy to answer any questions. Now, hand over to Abhishek to you. Thank you. Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Ritika, who is an individual investor. Please go ahead. Sir, thank you for the opportunity. I actually have three questions. One is, would you be undertaking any acquisitions in the future, and what kind of businesses would that be in? Secondly, Carlyle invested four years ago, I think. What are their plans for exit? Third would be, what is the plan to reduce your debt and also your finance costs? Thank you very much, Ritika. Obviously, this is a big merger for us. This itself is something that has to get executed over a period of time. Would we be open to any kind of acquisitions and opportunities, whether they are small brands, whether they are small partnerships or even strategic large opportunities? Yes, we will be. It needs to fit in with the areas which we want to grow. We have spelled that out very clearly that we are looking for growth in certain specific areas. In animal health, we are looking at opportunities to deepen our capabilities. Also, in terms of the entire companion animal area is a place where we would be open to taking any acquisition. Yes, we are, but obviously, we need to be very disciplined in the way we will make these choices. It is not something that we are intending to do merely to pursue growth. As far as Carlyle's plans, frankly, they are the promoters in this. I would imagine that since they're the principal shareholders in both the companies, and this merger would indeed also go through with the support of Carlyle. They are fully invested in this particular operation. I wouldn't be able to speak on their behalf except, of course, say very clearly that we have enormous support from the promoters in all respects, including the execution of this merger, as well as benefits that we would get after this particular merger. On the third area, which is to reduce debt, I think you're already seeing that we have, as a result of this merger, in terms of leverage, we would be coming down quite substantially. I'll ask Saurav to comment a bit on the debt side of it. Yeah, sure. Thanks. Our debt to EBITDA level is already going down. As I explained, it was at 3.55x as on 31st March 2024. As on 30th September 2024, we are down to 2.30x. With the improvement in EBITDA, the debt of the gearing ratio is going to go down. Overall debt level, I believe, would remain same for next few quarters, where there's a lot of investment happening in terms of working capital to support the business expansion. It's important to note that is on a standalone basis. If you see on a combined basis, even today, our debt EBITDA is below 1.50x if you combined SeQuent and Viyash financials. That brings us to a very comfortable position in terms of overall debt level and the gearing ratios. Thank you. Thank you. Maybe I'll ask Dr. Hari to also comment a bit on the first question, which is on any plans on the acquisition. Because I think that given the current merger, he would also have a perspective on that. Sure, Raja. This is a continuous process, either expanding the business, expansion goes through various things, right? One is going into the new capability developments, like new product acquisitions or new acquisitions or mergers. This is a continuous process, definitely we look at continuously. May not be bigger acquisitions soon, but we are going to add multiple areas on capabilities and products. Also, if we get opportunities, we are always open to acquire products. That's a continuous thing. Coming to that one, financial strength, if you see combined entity, we are going to be very financially strong company. It's going to soon, maybe I don't know exactly, at least one, two years, it's going to be debt-free company. The intention is not to maintain debt-free company. How can you invest further into business? That's the continuous process. Thank you. Thank you. Yeah. Thank you, Dr. Hari. Yeah. Next question. Thank you. The next question is from the line of Nikhil Shetty from Nuvama Wealth. Please go ahead. Yeah, thanks for the opportunity, sir. Sir, could you clarify, is there any seasonality in our formulation numbers as the sequential figures appear lower? Also, what's primarily driving the growth in the Indian formulation? Are there any recent product launches, or it is largely due to the field force expansion? Thanks. First of all, there is seasonality in specific markets. On an overall basis, it's not really seasonality. I think sequentially, you will see some reduction in quarter two compared to quarter one, because as we had indicated, we had had an extraordinary sales of vaccines in the first quarter on account of a breakout of the bluetongue disease, which happened in Europe. That was something which gave us quarter one a bit of a jump. Having said that, all the other businesses on a year-to-year basis are growing in double digits. That's why I would say that the growth of the businesses are intact. Yes, in market by market, you will find some seasonality which will come in. This particular quarter being slightly lower than the first quarter but still growing in double digits is on account of additional one sales that we got in Europe in the first quarter. Second question on the India formulation growth. It is not entirely on account of addition of new people that has just started giving us the impact, because as you know, it takes time for the new locations to get full potential of sales. It is on account of more aggressive promotions. It is also on account of three new products which we had launched last year, which are now getting the full scale of sales. You would recall that I had spoken about three products which we had started importing from Turkey. We've launched it in India. We're also getting some growth on account of that. Yeah. The impact actually of the new people on ground would be more evident towards quarter four, because that's the kind of time around which you begin to reach full real capacity for what you have invested in terms of people. It takes about a year to get the full potential of the region. Thanks, Nikhil. Yeah. Yeah. It would be helpful to understand the extent of API sales that have shifted to Q3 and the reason behind the shift and what quarterly run rates you expect for H2? Look, I won't get into the exact number, but we would typically have liked to be more in the region of INR 85 crore- INR 88 crore is the kind of number which we should have been in quarter two. You can make some kind of estimate of how much might get carried forward. We are right now looking, as we had indicated earlier, that between an INR 85 crore- INR 95 crore run rate is what should be a steady state for us. At this stage, there's no reason to believe why we will not be that. Yeah, that's helpful. Lastly, sir, regarding the exceptional item, are there any remaining expenses related to the Viyash merger, or have all costs been reported in Q2? Could you explain why ESOP cost is higher this quarter? I believe it was expected to be lower. Yes, I'll answer the second one, piece of it. As you know, there is a total plan for ESOPs which was approved in 2020, and we have now nearly completed the allocation of all that was not granted. With that, we have nearly completed all the grants which were there. It's, one, the balance grants which have been provided in this particular quarter. As well as some change in the vesting conditions, which will not impact on the totality of the cost but would accelerate a bit into the early year and not impact the total impact on the total cost of the ESOP. The second question in terms of exceptional items, obviously, the merger process is on, so there will be costs which will come. This is what is typical to any kind of a merger. We will make those estimates as we go along. I wouldn't want to give clear guidance on that right now. Okay. Thank you, sir, and all the best for future performance. Yeah, thank you. Thank you. A reminder to all participants that you may press star and one to ask a question. The next question is from the line of Bharat Sheth from Quest Investments. Please go ahead. Hi, sir, and thanks for the opportunity, and congratulations to the whole team of the SeQuent and Viyash. My question is now since announcement two months has already passed, but before official merger is announced on paper. Operational, what are the benefits that we try to get in, say, over the next 12 months to two years' time that can help us in understanding broader aspect? That is first question. What's the other question, sir? What are the other questions? I'll just take all the questions together so that I'll be able to answer. The second thing, sir. We have been getting understanding that lot of animal healthcare are looking India for CDMO business as well as custom manufacturing. In that place, how we'd like to play out over the next two, three years? Third, on the financial side, sir, if I look at our H1 formulation growth is reported 16%, but if we look at it constant currency, which is 24%, and since you, in your opening remarks, you said that Turkey has stabilized. How do we see second half growth? Thank you, Mr. Sheth, for the three questions. I'll take the third one, which is on the constant currency growth and on the formulations. At this point of time, what you can see is that there is growth in constant currency as well as there is growth in the reported currency in almost all the markets. Right? I think that gives us a sense there. There is not so much of a difference between the two growth numbers, which means that there is no adverse movement in currency other than what is normally would be a depreciation, which may happen here or there. To that extent, I think going ahead also in the second half, we are confident and also hopeful that there will be growth both in constant currency as well as in the reported currency in all the markets. In Turkey, specifically, since you have asked, in recent times, which is the last two quarters, we have seen that the currency is relatively more stable. Also, there are no ad hoc sort of announcements and initiatives which we used to see about two years ago. To that extent, I think we can begin to be looking at a business where we are focusing on growing volumes, making sure we are launching new products, and not get too impacted. Other than, of course, inflation, but that's where we bring in price increases. There are two other questions, which actually I will request Dr. Hari to give his perspective on it. The first being on, now that the merger is a little over a month from an announcement, how do we see the next 12 months in terms of what synergies and things coming together? Also the second one, which is on the CDMO opportunities, which could be coming up in animal health. Thank you, Dr. Hari. Yeah. Thank you, Raja. Sure. Coming to synergies, we started working with the synergies, and as I explained, there are four areas where we are looking at the synergies. R&D, manufacturing, sales, and other indirect costs, whatever. These synergies will be both short-term, mid-term, and long-term. We started working, of course, since we just filed two months back. Still, we need to understand what extent we can share this to public. As soon as we can, we will share. We are working very seriously, both teams. Definitely it's going to be the good synergies, both short-term and mid-term. Most important, long-term is our focus. We can share you guys as soon as we can, because still we need to work actually what kind of things we can share to the public. The second thing is CDMO. There's a lot of initiatives happen both sides. Already we started interacting. Okay? Without conflicting anything, whether CCI or regulatory purview, we started interacting and we see some good opportunities coming in CDMO business with Viyash capability. Already we started working with one CDMO business very actively. These CDMOs will take a little longer time. It's mostly mid-term opportunities thing. Viyash also, there's a large number of products going on both CDMO with Big Pharma as well as CDMOs with big generic companies also. We are trying to work with big generic companies in different ways. Instead of just selling and buying more, we are working with a few partners. That's how you see that just in two years for any company, it's not easy to build a relationship with innovators and complete all their requirements, which includes big EHS activities and quality and developing products as expected by them. It's not like generic, whatever process you can do, it's not the same way to CDMO. We are very successful to develop three products with them, two innovators. Already we validated and supplied one intermediate and one API. These are the big products it's going to happen there. It's going to be a large CDMO business next three to five years. CDMO revenues will start coming maybe in the medium term kind of thing. I hope I answered your questions. If you have any other question on this, I can. Thank you. Hello? Yeah, thanks for that. Apart from that contract manufacturing, which SeQuent already has, and SeQuent has got some approval. How do we transfer, because SeQuent is facing some kind of a manufacturing capacity constraint also. That can be transferred to our facility in two years. How long will that take? There are two aspects in that. One is how fast you can expand or transfer existing business. Still, we want to maintain that animal health identity in that side. Whatever SeQuent requires immediate needs, up to penultimate stage, up to N -1 stage, it's same, whether it is human health or animal health. That's where we have large capacity. You can see our intermediate facilities are approved by FDA. That's where we can do quick transfers, that's what you call, if it is US FDA CBE-30. All other regulatory approvals, of course, based on the market, normally takes six months to one year. Some things can happen in six months, some things can happen in one year. We are evaluating all those things. The short-term approach is whatever intermediates they need, additional demand, those things can be transferred immediately to Viyash manufacturing site. Second thing, where we procure key starting materials from external sources. If there is a synergy, those things also we'd like to transfer to Viyash. Of course, additional capability to build a SeQuent for short-term needs. Already we are working together. How can we expand final stage APIs by supporting Viyash from intermediates? These things are happening. It's not only contract manufacturing, it's contract development as well as manufacturing. Now, SeQuent is going to pursue aggressively on generic animal health products. Today, most of the SeQuent business is going to innovators, 70%-80%. There are lots of opportunities coming even from generic animal health. That's where we are going to focus on these things. All we are working on, I think, maybe take some time. We can share you as soon as we can. Thank you and all the best. Yeah. Thank you. Thank you for your question. Yeah. Next question, please. Next question, please. Hello, there's the next question. Thank you. The next question is from the line of Kiran D. from TableTree Capital. Please go ahead. Thanks for the opportunity. This question is to Dr. Hari. Sir, we've tried searching for more information on Viyash Life Sciences, but beyond knowing that linaclotide is one of the products, we hardly know anything about Viyash. We are not able to find any information. If you could just elaborate in detail about Some of our customer segments, what we do, how much is our domestic revenue, how much is our export revenue, are we doing ARV, anti-infectives, oncology, which segments? If you could just elaborate on the Viyash business on product segments, customer segments, and what percentage of domestic export revenue, innovator segments. If you could just, again, this is a very strategic level of information that I'm looking for, Dr. Hari. Sure. Thank you for that. I can give you very high-level things, guys. I cannot go into very detail, I can give you very high-level things. Viyash operates very large portfolio in the API today. We have about 60 commercial products, and we operate almost close to 150 countries. We sell everywhere in the world. Our majority business, of course, API business in Europe, major business almost 30%+ we do. We are growing very fast in the U.S., and we do business in LatAm, we do business in China. Our large business is coming from exports, and mostly from regulated markets. Regulated markets, definitely you know that somebody says it's U.S., Europe, Japan, Australia. If you look at the markets like emerging markets, China, Brazil, also works under highly regulated markets. Once you enter with the client, it's very difficult to change those markets. In fact, U.S. is much easier than those markets. Our major revenue comes from regulated markets, U.S., Europe, LatAm, China. Now, last two years, we started working with Japan. If you ask me straight away, where we don't have much business today is Japan. That's where we are working very seriously. Fortunately, we are able to tied up with a few customers last six months, one or two products. Our India domestic-to-domestic market is very little. We don't sell much for domestic-to-domestic. Even though our numbers reflects India sale, it mostly goes into the regulatory markets. You know very well, most of the Indian companies controlled U.S. as well as Europe generic market. That's how they buy from us and convert and sell it to U.S., Europe. Say it's going to the mostly regulated markets. We have 60 commercial products. Almost 20 products under either filed or under approval stage. That's the API. Always our pipeline is around 20%, 25%. We have a very strong portfolio team. Of course, R&D, you know we have strong R&D, around 175 people in API R&D. They are capable to do at least 10, 12 products in a year. That's how we are able to do that. When it comes to product segment, we are everywhere. Most of the things, API business requires generic, general facilities for most of these areas, except few areas like fermentation or hormones or oncology. Other than hormones, fermentation, we are everywhere. This product segmentation is we are in all the categories, whether it's CNS or diabetic. Every area we have there, in fact, to all those things. New area where we started is oncology. We have FDA-approved facilities, oncology. One facility we mostly used to do for contract manufacturing, one of the big company. Other facility we refurbished and re-qualified this quarter. That's oncology capability-wise, it's one of the big facilities. We have two modules on that. Modules are ready now. We just qualified all equipment. Now validations are going to start in under that oncology. Also, if you can see our portfolio, current portfolio, almost 50% are in oncology. Our strategy to develop last two, three years products, we did mix of two, three categories. One is to maintain sustainability, whatever is the top line, bottom line. Second is how can we grow mid-term by developing either large volume products where we have strength on intermediates, or where we have strength on combination, go to backward integration. That's how we focused in one category. Third category is most going towards a little more complex areas, which includes oncology. That's how we moved out slowly from matured products to little complex products or little late launches like NCE -1 or little more complex. That's how our current portfolio is 50%+ are all new molecules, either complex or oncology. It's going to be big oncology portfolio we're going to build next one, two years. Market, that's how we do 150+ products we have commercially with all over the world. This is not the only linezolid company, as I explained earlier. I don't know how many companies really have this strength. Our 10 products give INR 60+ sales. It's very well diversified. It's not depending on one product like linezolid. All products contribute a lot. All products' gross margins are pretty good. The second point, what I mentioned, out of 10 top products, six products we are the market leader. It's not only, of course, linezolid. We have our own patent. We are the market leader. Other than linezolid, we have five other products. We are the market leaders in the regulatory market. Of course, these six products everywhere in the world. That's how we can differentiate. We have a very strong portfolio. That's how we are moving on that. Great. Do you have any further questions I can answer? Yeah. Sorry. Follow-up question, sir. Yeah. Yeah, please, sir. Go ahead. Sorry. Another two things you asked. Antiretrovirals. Even though we find few products, when we build this company, our intent was to go to a fully integrated platform, antiretroviral. We have intermediates, we have strong capability on both manufacturing as well as understanding the market. We realized, looking at the competitive profile, how the market is going on, we decided to drop antiviral products soon. That's how we rationalized a couple of products. Why our top line has not grown too much from last year, first half to this, only 5%, whereas EBITDA has grown drastically. That's one of the reasons we rationalized few antiretroviral intermediates. In fact, we lost almost INR 150 crore to INR 100 crore top line. We downsized that commodity business and moving towards more complex and more new products. That's how all our intermediate business, we are moving out from commodity, large volume, where small guys can compete differently. We are moving to either the innovator place or big generic companies where we can tie up long. Also doing little more complex regulatory environment for new products, because that's where we see the growth opportunity for intermediates. If you tie up with the regulatory, and regulatory expectations are also growing day by day for intermediates. That's where we see opportunity for us. That's how intermediate business is growing. The third business segment, free sources. We have a manufacturing site in U.S. We do business only for U.S. at this point, but we are working actually how can we expand other markets, but that's going to happen next three to five years. Next question. I just have a follow-up question, sir. Can we have? In terms of revenues, again to Dr. Hari, we have reached about 754- Sorry to interrupt, Mr. Kiran. Please fall back in the queue for further questions. Again. Thank you. The next question is from the line of Kaustav Bubna from BMSPL Capital. Please go ahead. Yeah. Hi, Dr. Hari. Thanks for taking my question. Last time we spoke about the potential opportunities from this U.S. BIOSECURE Act. Just wanted to understand what's the update on how is this act progressing? What is the update? Has it been approved? When will the benefits start flowing in? Could you please share updates over there? I don't see the current update, but what I heard actually, still it has to be approved in one House. Since now Trump coming in, everybody's expected it's going to approve in other House also soon. We have to wait and see. More than approval, we see there's a positive trend of one and a half year. That's how CDMO companies are able to expand capacities. We also see some opportunities from big companies. One is act, when they're going to approve all those things. Irrespective of that, we see the positive trend coming business to India. I think that still Senate approval is pending. Maybe after the new government Trump come in, they do that. Okay. Basically, the Senate approval is remaining. You all are in the knowhow, you all are close to this matter. Do you think there's a risk with Trump taking office or do you think it will aid the passing of this act? I cannot comment that level, but at a personal level, I don't see any risk it's going to happen. Official approval, nobody knows, but business is going to come to India. That's what I can tell you. Excellent. Okay, thank you so much. Thank you. You're welcome. Thanks. Thank you. Next question. The next question is from the line of Prashantk umar Hazariwala, who is an individual investor. Please go ahead. Hi. Good morning, sir. Good morning, Prashant. Yeah. Sir, congratulations for good improvement in EBITDA operating margin. My question is, when we will see this kind of impact in profit after tax? When we come down to the profit after tax, there is nothing much left for the profit. How do you see this? When exactly we can expect that we will get to some good level of profit after tax? Yeah. Thank you for this question. We should also look at it in the way in which, post the merger, how the financials would move. All that at this stage I can say is that the way the business plans will emerge, we expect that at a PAT level, we would be beginning to accelerate on the delivery at that level very soon. Yeah. Much earlier than we would have been able to do on a standalone basis on SeQuent. For SeQuent, what we had a plan for SeQuent. If we don't consider merger, what was the plan for SeQuent for about top, after that? I think we are already beginning to move in that direction. If you see that in quarter one of FY 2025, we had began to turn positive on PAT, and by the fourth quarter of this year, we would have began to get the growth coming in. Therefore, FY 2026 is where most of the incremental growth which would come into margin and EBITDA would flow through straight into the PAT. Yeah, Saurav? That's for you. Just to add, there is already a very significant improvement in the PAT. H1 financial year 2025, there was a negative PAT of INR 588 million. H1 2025, that is a positive of INR 199 million, strong trend reversal and a growth of 134%. All this business upgrade takes time, and directionally, we are already there, and we'll keep on going strongly in that direction. All right. What kind of ESOP cost we will have for next one or two years? How do we see this cost? It is dampening our profit after tax all the time, and it's rising all. It's not finishing. I don't know why. It's not like before two, three years, we have started, but still, it keep on going on. How do you see ESOP cost? It is improving and it will keep on improving, but unfortunately, we don't give forward guidance on specific numbers for a couple of years. All that I can say, Prashant, is what I said earlier, is that the scheme grant, which is the total number of shares which were approved for grant, more or less have been exhausted. Yeah. With the last round of grants that happened this quarter. Therefore, obviously, we should see that in the next two to three quarters, it should directionally start moving downward. Any ballpark number, like estimation, like INR 1 crore, INR 2 crore, that kind of thing? What kind of cost we can consider quarterly for years 2022 onwards? It should begin to come down. I think it's by the next quarter, we'll begin to give some more clarity on the rates at which it will come down. All right. No problem. Thank you very much. Thank you very much for your question. Awesome. Okay. Thank you. Thank you. Yeah. Due to time constraint, that was the last question for today. I would now like to hand the conference over to the management for closing comments. Thank you. Thank you, everybody, for participating in this call. I hope that we've been able to provide you insights on our business performance and also the way ahead, as a result of the proposed merger with Viyash. We are excited with the prospects and the journey ahead. We've already begun to see the results. We thank you all for supporting the company. We will now end this call and wish you all a good day ahead. Thank you. Thank you. Thank you, everyone. Thank you. On behalf of SeQuent Scientific Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.