Ladies and gentlemen, good day, and welcome to Aarti Drugs Limited Q1 FY25 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on beliefs, opinions, and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all the participants line 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. Adhish Patil, the Promoter and CEO of Aarti Drugs Limited. Thank you, and over to you. Thank you. Good morning, everyone, and a very warm welcome on behalf of Aarti Drugs management for the earnings conference call of Aarti Drugs for the June quarter, 2024. On this call, we are joined by Mr. Harshith Savla, Joint Managing Director, Mr. Harit Shah, Whole Time Director of Aarti Drugs Limited, and Mr. Vishwa Savla, Managing Director of the Pinnacle Life Science Private Limited, and SGA, our Investor Relations Advisor. I hope everyone had an opportunity to go through the financial results, press release, and investor presentation, which we have uploaded on the stock exchange and on our company's website. Let me begin with the highlights of Q1 FY 25 financial performance. There has been a drop in revenue to INR 557 crore. Despite the visible geopolitical uncertainty, supply chain hurdles, and macroeconomic volatility, our business demonstrated resilient performance, though decline in top line is attributed to lower realization and some negative rate variance and subdued export market demand in API business. EBITDA stood at INR 66 crores, with EBITDA margin at 11.9%, PAT at INR 33 crores. Going ahead in FY 2025, we anticipate an improvement in the margins, mostly driven by an anticipated growth in export sales and backward integration. Formulation segment revenues stood at INR 70.4 crores for the quarter, a growth of 4.2% quarter-on-quarter basis. In the last quarter, we commenced our operations for dermatology products in Tarapur. We faced key issues for the scale-up of the same, which led to a negative impact of around INR 6 crores at PBT level in the current quarter. We expect to ramp up the production at this facility progressively in next two quarters. The Greenfield project at Gujarat, Saykha for specialty chemicals is on track, which we plan to come in by end of Q2 FY25. With this, the operating leverage is expected to kick in from the second half of the year with improved capacity utilization of both the new Greenfield projects. During Q1 FY25, the company incurred CapEx of INR 52 crores, mainly towards capacity expansion, backward integration, and new product launches at the formulation side. We anticipate a total CapEx of INR 200 crores for the full year. This CapEx will be mainly funded through internal accruals and partly through term loans. In June 2024, a fire occurred at intermediate unit at Tarapur, which manufactures certain API products for external customers. Production operation of the said unit had been temporarily disrupted, which began operations in July 2024, so it was restored within a month's time. The unit was covered adequately by industrial all-risk policy, so it has adequate insurance cover. The pharma API manufacturing industry is in a constant state of evolution, and we are steadfast in our commitment to remain at the forefront of this space. In the year ahead, we plan to further expand our capabilities and enhance our offerings also in the oncology therapeutic area. As we navigate through short-term challenges, our commitment to overcoming these obstacles and achieving long-term success remains steadfast. Our journey may be marked by uncertainty, but it is also defined by collective ability to adapt, innovate, and emerge stronger. I reiterate on our positive outlook for both for API and non-API business. Our ongoing projects, coupled with optimized profitability, will serve as the cornerstone of steady growth in the coming years. Importantly, we anticipate continued growth in exports within the formulation business as well as the API business. With this, we can now begin question and answer session. Thank you. Thank you very much. We will now begin the question and answer session. Participants present on the audio bridge who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Ladies and gentlemen, we will wait for a moment while the question queue assembles.... The first question is from the line of Rashmi Shetty from Dolat Capital. Please go ahead. Yeah, thanks for the opportunity. I'm audible, right? Yes. Yeah. So my first question is related to the API business. You know, this time, what is the reason that we are seeing such slower demand in the export API? And what is the kind of growth that we are seeing in our domestic API? Plus, the rate variance is negative, but what is happening on the volume side? Okay. So first, to answer the question related to volume, what we have seen is that the domestic volume was more or less not that impacted year-over-year basis, but the export volume was definitely impacted by almost around 8% year-over-year basis. And this was the major reason, even though major reason why our EBITDA margins went down. Even though our gross contribution year-over-year has improved by more than 2%, and even on Q1Q basis, even on with respect to previous quarter, our gross contribution has improved by 0.3% for the standalone business, that is, API and business. However, it was mainly due to the lack in demand from the API, it led to lower overall EBITDA margin. Among your 5-6 top products, where the demand was majorly impacted? Yes. So mainly, what we have seen is that the antibiotic category was impacted, mainly the first quarter, and, to some extent, we even saw a couple of anti-inflammatory and antiviral products were impacted in terms of demand. Got it. So for the full year, how should we see, you know, your total API business, excluding the specialty and excluding the intermediate business, how should we see the growth? As, the derma facility is also, commercialized, do we still expect that, you know, for the full year, we will, we will be able to post high single-digit top of growth? Yeah. Actually, basically, the first quarter will be pulling down the aggregate for the entire year, no doubt about that. But we do expect improvement, especially for the second half of the year. Q2, and I will ask Harit to talk about how the demand in Q2 is looking. Harit, can you speak about the demand of Q2? Yeah, demand, domestic demand looks okay, like we can be well to achieve year performance, but export demand will still looks little slow, and we expect demand to pick up by third quarter, basically. Okay. But for the full year, there will be any growth, or we will see, again, a decline in FY 25? So for the, as far as the entire year is concerned, we had earlier stated that for the first half of the year, first half of FY 25, there will be a negative rate variance year-on-year basis. Whereas the second half of FY 25, the negative rate variance will go away because the prices had already fallen down in December and March quarter. So the rate variance, negative rate variance will keep on going down as we go ahead in the quarters. And hopefully, with the help of dermatology products and the second product, which is coming online by the mid of this year, we will get additional benefits in terms of new products will be available. So volume growth will also be quite good for the second half of the year. We should be able to post some growth. Okay. And, in terms of specialty chemicals, are we on track that, you know, from Q2 FY 2025, you know, if the plants get commercialized, you know, there will be a very good supply, and what kind of capacity utilization we can expect for this year, and what kind of growth we can expect in specialty chemicals for this year? So this year, we feel that it is mainly in the second half of the year that the second segment will do well because the most products and capacities will be available for the second half. Frankly speaking, if everything goes well, we should see a 50% growth for the second half of the year, year-on-year basis. In the specialty chemical, we are talking about 50-50%? Yes, for the second half, year-on-year. For the second half. Understood. And my last question is on operating margin. You know, any guidance? I mean, I understand that there will be a good revival in the second half, and there is one more quarter of pain, and this quarter, if you exclude that sixth quarter, which is sitting in the other expenses, your EBITDA margin is roughly at around 12.7-12.8%. Second quarter, if I assume it is more or less similar to that, what kind of margin can we expect in second half as well as for the full year? So, as far as EBITDA margins are concerned, then now the gross margins may not increase too much from, from here. Okay. Because they've already improved. Right now, it is somewhere around 34.1% for the standalone business. So probably by 1%, there's still a scope for improvement, based on how the market demand is there. Because if the demand is less than the, it will be little difficult to increase the gross contribution. But if the demand is good, then the gross contribution can go up by 1% more. And with the better capacity utilization, the other expenses will become lesser as compared to sales. Right now, in this June quarter, it is very high because the Nova is changed. So we hope that in the second half of the year, if you look at only the second half, we still hope that, you know, around 13%-14% EBITDA margin should be able to achieve. Okay, sir. Thank you so much. Dr. Adhish sir. Thank you. Ladies and gentlemen, before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question is from the line of Ankur Mahajan from Axis Securities. Please go ahead. Yeah. So my question is that if you see the monthly prices of Cyprofloxacin, ofloxacin, levofloxacin, the antibiotic portfolio, so their prices are almost in the range of we can say that's flat negative or negative realization in the range of 4%-5% only. But almost top line is degrowth by 16%. So I mean to say that the API prices that's showing stability, while our revenue has declined by 16%. So could you throw some light on it, sir? Yes, please, please. So when we say that negative 16%, degrowth, and in that, around 11% is negative price growth, that is a decline in sales. That is, when we compare June 2023 with June 2024 in year-on-year quarter. But if we compare with the previous quarter, that is the March 2024 quarter, the domestic prices are almost the same. However, we did see some decline, quite a big decline in the export prices. But the reason for that is because in exports, we typically have 2.5-3 months of pending orders. Order book is there. So basically, the exports which happened in March quarter, those were the orders taken in the December quarter when the prices were high. So those orders got executed in March quarter. Whereas in June quarter, the orders taken in March quarter got executed. And because in the March quarter, the prices had fallen down as compared to December quarter, and that is the reason why we saw a decline in the prices as far as exports is concerned. But as far as the domestic is concerned, because the order book is lesser than one month, we didn't see much price impact quarter on quarter basis. Thank you, sir. Thank you. Thank you very much. The next question is from the line of Pramod Dangi from Unifi Investment Management LLP. Please go ahead. Yeah, thanks. So, I just couple of questions. One on the export, you said that the volume was down 8% year-on-year. What would be the price variance for domestic and the export year-on-year in the API? Year on year, so year on year, it's almost around 10%. Export was also around 9%, and, in fact, domestic was around, little upward of 12%. Oh, okay. So domestic was down much more than the export. As far as the API is concerned, year-on-year, that is. Correct. And domestic, you said that the volumes were flat, right? While export was down 8%. Yeah. Yeah. Yeah. More or less flat, yeah. Export, any particular region or any particular, you know, you said about the antibiotic and the anti-inflammatory drugs had some demand slacking sales. Any particular region, or any other issues which, you know, impacted the export revenue? So there are multiple products where we got impacted. As far as one product is concerned, ofloxacin. There was a change in HP regulations. But that is to do with the domestic. I'm talking about domestic here, domestic market for ofloxacin. There was change in HP regulations, so there was slight disruption in the production because we had to change the quality parameters of the product and the plant scale. But that was a temporary setback. Then because of the fire incident, one of the anti-inflammatory products got impacted in terms of dispatching the June quarter. So there we got impacted at export side. And overall, for the antibiotics for which, for both export and domestic, ciprofloxacin, levofloxacin, they made a lag for this particular quarter. Okay. But it has not been any particular region that, few of the regions is impacted more because of the currency. Earlier, you know, we used to have that currency, issues and, you know, other issues. Was it the, you know, more- Yeah, yeah. Competition from China or any particular thing? So in exports, thing, lot of impact in lot of countries. There's the regulations, the change in governments in this particular year. Dollar shortages, that issue is slight, has slightly improved as compared to past, no doubt about that. But the political uncertainty, the change of government and many of the export countries, they work on, you know, government tenders, which creates the demand for the API for exports. So probably that might also be the reason why it was slightly slower at the export side. ... Okay. And on the formulation side, you know, we have seen the, you know, significant drop in the formulation when it comes to the export. So if you can throw some light on that? Yeah, Vishwa, can you answer the question? Vishwa, Sir, has actually got disconnected. Okay. We are trying to connect him again here. Okay. So, in the formulation, overall, the export margins have been good. Means, we were able to achieve around 57% of our total formulation through exports. So export is doing very well, and that is the main focus area for us, because that is where the margin lies in the formulation business for us, as of now. In the domestic market, we are doing toll manufacturing, so it is like a value add kind of a service, but not major of the profits come from there, and probably that might be the reason. And plus, we also had couple of audits at the formulation side. We had a USFDA audit for the oncology block, and then we had a UKMHRA audit also for the regular OST block. So probably that was also one of the factors why the domestic production was not that high during the June quarter. Okay. Vishwa is now in the conference. Okay. Yeah. Yeah. So if I can repeat my question, you know, that we have seen a, you know, drop of 33% in the formulation export. Uh, right. So I think it can, you know, if you can throw some light on that, was it driven by the price variance? Was it driven by any particular region or any particular reason? Because the 33% year-on-year drop was significant. So majorly, the reason for growth in formulation exports is, as we are strategically, reducing our domestic business and increasing our international business. So it's driven by, both addition of products, as we have had some new registrations, in our existing markets, and also because of some market additions, as we have entered into some new geographies and new territories. So, it's a combination factor of both new products and new markets. And, that we continue doing. We are investing heavily into new product development and new launches. So over the coming quarters and coming years, we, we plan to continue having, new launches as well as new markets opening up, which will significantly keep increasing our international formulation business. Okay. No, but, what I'm asking is, if I look at the, export revenue, last year in the June quarter, we had done INR 60 crore of the export revenue, if I'm not mistaken, and this year we have done INR 40 crore of export revenue. Is that number right, or I'm missing something, over there? June to June, I'm talking about. Okay, from previous one. So like Adhish said, one of the reasons for this quarter is, in general, the sales have been low because of lower volumes, because we had the two major audits, also, and we also had a shutdown in one of the blocks, for almost a month, because we are doing some brownfield expansion to increase capacities. So it was more of a temporary short-term shutdown. And, because of the audits, again, the volumes were a bit low. So the June to June, the lower sales is mainly driven because of lower volumes. Okay. Got it. Thank you. And the last question on the, you know, that INR 6 crore impact on the dermatology thing. Right. Where it is adjusted? Is it adjusted in the operating cost, or is it adjusted in the COGS? Or is, where it is in the impact? Yeah, yeah. So, around 3.5 would be that impact will come at EBITDA level, and around 2.5 would be post EBITDA. That is the interest and depreciation. Okay. Okay. Okay, then. Thanks. That's from my side. Thank you. Thank you. Ladies and gentlemen, before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question is from the line of Pradeep Rawat from Yogya Capital. Please go ahead. Yeah. Good morning, and thank you for the opportunity. So I'm new to the company, and I need a clarification on the export side. So at one slide, there is written, 33% of revenue is from export, and then we have revenue out of Asia more than 33%. So can you clarify on that? Yeah, yeah, yeah. So, okay. One is regarding the overall split of the company sale. And when we are talking about region, it is generally percentage of the export sale. And we, when we say about Asia, in exports, it doesn't include India. It is excluding India. Okay, okay. Understood. Understood. Thank you. Thank you. That's all from my side. Thank you. The next question is from the line of Kunal Shah from Nova Capital. Please go ahead. Hi. I want to ask, are the prices for API stable or still reducing? And if so, why are these prices continuously falling? Do we see prices increasing during the year? ... Harit, would you like to answer that question? No, more or less, prices are stable. Normally, prices are at bottom and even API prices are at the bottom level. So prices are stable since last one quarter, and we expect price to remain stable for another, the second quarter also, for this quarter. Yeah. Okay. Okay, that's it. Just one question. Thank you. Thank you. Ladies and gentlemen, before we take the next questions, we would like to remind the participants that you may press star and one to ask a question or come in the question queue. Thank you. Next question is from the line of Yug Modi from AP Capital. Please go ahead. Hi. Thank you, operator. Sir, I just have a couple of questions. Can you give some guidance on revenue and profitability for the next two years? Mr. Yug, can you come a little more close to the speaker? We're not- Yes, yes. Now I'm audible? Yeah, now you are. Could you give some guidance on revenue and profitability for the next two years? Yeah. So, definitely with FY 2027, we had given a guidance that in next 3-4 years we wanted to achieve upwards of INR 4,000 crore of revenue. We've not start yet in the first quarter of current year. But nevertheless, when the demand picks up and all these capacities will be online in the second half, we will definitely be on the right track to achieve that upwards of INR 4,000 crore turnover. That is assuming the current prices, which I'm not considering any price hike. So more or less, assuming the current price hike, due to volume growth, we hope to reach to that level. As far as the profitability is concerned, we would definitely high EBITDA margins anywhere between 14%-15% long-term basis. Lastly, we plan to do around INR 100 crore of CapEx. What facilities are we expanding in this CapEx? Sorry, you are asking about current year CapEx? Yes, yes. Okay. So, yeah, so current year, the two greenfield projects, which we just completed and one is almost on the verge of completion. So, the partial remaining CapEx on both projects, they will be completed in this year. Plus, we'll be doing some brownfield expansions for the API block. Plus, we are doing a lot of R&D on the formulation side. So probably, on that part, Vishwa can explain better. Vishwa, would you like to answer that question? in terms of formulation R&D, basically, we are working on new product developments for about 15 products across the various regulated markets. So the combination of oncology as well as cardiac diabetic products and all these products are planned for launches in the coming 2-3 financial years. Perfect. Thanks, I understand. Thank you. Participants present on the audio bridge who wishes to ask a question, may press star and one on their touchtone telephone to ask a question and come in the question queue. Next question is from the line of Rashmi Shetty from Dolat Capital. Please go ahead. Yeah, thanks for the opportunity again. I will get some formulation business. You all mentioned that, you know, toll manufacturing business you are rationalizing and you are just focusing on the export business. So, are we expecting that, you know, sales for the formulation business to decline this year? Vishwa, would you like to answer that? Yeah. Yeah, I'll answer that. No, so no, we are not expecting sales to decline. What we are trying to do is utilization, keeping a maximum utilization for the export business. Having said that, the toll manufacturing we are continuing, we're just doing it in for more strategic products. And at the same time, we are also undergoing a brownfield expansion in our Baddi facility, which will in the next quarter increase our capacity by about 15%-20%. And over the next 12 months, almost double our capacity, 12-15 months. So, we are building up additional capacities to be geared up to handle both the existing toll manufacturing business, as well as the increase in the international business that we are focusing. You mean to say the increase in the international business will offset the decline in the domestic business? So therefore, you know, is it possible that, you know, domestic formulation will be giving a double-digit growth or similar growth what we have posted in FY 2024? Yes. Yes, that's it. Okay. One more question on oncology formulation. You know, when, when can we expect, you know, sales contributing from oncology? We are expecting initial sales to kick in from FY 2026. Okay. And the majority of the sales from FY 2027. Okay. Got it. Thank you. That's it from my side. Thank you. The next question is from the line of Chirag Dagli from DSP Mutual Fund. Please go ahead. ... Yes, sir. Am I audible? Yes, you are. Yeah, thank you for the opportunity. I think you had capital work in progress of about INR 265 as on March 20, 2024. What is that value as of now or as of June? And how much have you capitalized, you know, does that include the derma facility as well? Though I don't have an exact number, but then the thing is, our net working capital, it- I mean, Capital Work in Progress, sorry, is the hard asset. Okay. Okay, okay. So, capital CWIP, the whatever CWIP we had mainly was to do with one building project which is going on in Saika. So that will be put to use by the September quarter, most probably, by the end of that. And, the rest will be slightly. There are some aspects which are ongoing on the salicylic acid part too, like plot development et cetera, but that will be the minor component. The majority would be the Saika one. Correct. So that is still sitting in the book, that is not yet capitalized? Mm-hmm. The Saika capacity is still not operationalized. Correct, sir. Understood. And when that comes on stream, how are you thinking about when that comes on stream? So yeah. So when that comes on stream, it will help us in increasing our existing product production capacity. And another thing is it will lead to backward integration for our diabetic product. So that will also help us improve our margins in the second half. Understood. Understood. And, I also remember that you were putting additional metformin capacity. Has that come up? So, so right now we are still at around 40-45 tons per month. We are in the process of increasing that to around 1700-1800 tons per month shortly. But that will require some environmental approvals there in IP. But we are doing that with the help of a slight process change. So it is in the, the work is going on. We already have taken validation batches as well, so... But then we will have to, you know, move all the customers to the newer process. So that might take a little bit time. Understood. And do you have a guidance for volumes in FY 25 and 26 for the APIs? I see. I believe it's, we were looking when we started the year, we thought that the salicylic acid plant will also start contributing right away from the Q1. So that has not happened. Plus, there was some subdued export demand in the U.S. space. But if that had not taken place, we were expecting around 14%-15%, around that, targeting at least. But let's say for the second half, we will still try to achieve that, at least for the half of the year, year-on-year basis. The second half, you're saying you'll come back to that, mid-teen volume growth, first half- Yeah. Yeah, first half will be, like, almost flat in because we had a bad first quarter, but second half should, we should be able to get that back into it. For the full year, a single digit, high single digit volume growth is how it work? Well, yeah. Correct. Correct. For the- Understood. Understood. And, like you mentioned, Ritai mentioned, earlier in the call, that API prices are today at bottom, or closer to bottom. Would you say the same about your spreads as well? The spreads in terms of gross contribution? Correct. Yeah. So, because the API prices are lower, I think the gross contribution margin, margin I think, should be highest. So, so that is the reason why our gross contribution margin has been improving quarter-on-quarter basis. In fact, in spite of the lower EBITDA margins, our, for the standalone business, the gross margin has actually improved with respect to the previous quarter. So it is now, it's almost 34.1%, and, our target would be around 35% for this calendar year, as for the gross contribution margin. Yeah, but I think we should look at it on a per unit basis. Okay. Would you say that our per-unit profitability, whatever, per ton per, you know, per- Understood. Understood. That should not change on a composite level. But no, would you say that that number is at lows, you know, cyclical lows? If I look at the data, it is not. For some products, it is actually better in the last five quarters put together, actually. But in some products it is mixed actually. In some products it is good. It is, in fact, one of the best in the last five quarters, some products, but in terms of it is making the average, I would say, standpoint of five quarters, it will be the second or third quarter in terms of absolute growth contribution point. So that is not impacted. So that is actually the main problem. What happened in this particular quarter was lack in volumes. Okay. Understood. Okay, Harsh, thank you. Thank you. The next question is from the line of Pramod Dangi from Unifi Investment Management LLP. Please go ahead. Yeah, thanks again. Just on the specific chemical, you know, you said that H2 should have 50% year-on-year growth in the specialty chemical. I believe dermatology and the new, you know, salicylic acid is part of this, right? So the thing is, has multiple uses. So in some cases, it goes for in some cases, it goes for intermediate or pharma, or actually, and in some cases, it will go for as a, like, when say, chemical manufactured under cosmetic products. So it is a mix like that, mainly banking on the Okay. And dermatology will be part of this segment, API, specialty chemical? So part of will be API. And the new plan, which we are starting in September, that will also contribute to this growth, right? Yes, correct. That will contribute to the category. And then, what is the... You know, you just said that the growth in the H1 volume was to be flat, in the quarter one, it already 5% down year-on-year. But H1, you are saying overall the growth will be flat. What is the price, any guidance on the price variance in the H2, or the, say, H1, or the second quarter? How it looks. When we started the year, we were expecting around roughly 8%-10% price growth for the first quarter, for the first half of the H1, not quarter. Okay. And then that's slightly ahead of that actually, right? 10, 10, 11% or 12%, kind of the- Yeah, for Q2 it will go down actually. Means Q1, the impact was maximum. We were expecting maximum impact because the prices has reduced on 16% this current quarter. So as about September 2023 prices were lower than the June 2023 prices. So that is why, you know, September 2024 to September 2023, the reduction went up. Got it. Got it. And the API, you know, we've seen, you know, that significant drop in the volume for the export, almost 9%, what you said. Is it now recovering in the Q2, or is still the Q2 may also have some, you know, similar kind of the... Because my question is related to the contribution margin. You know, after six, seven quarters, where we were making more than INR 210 crore, which is contribution per quarter. This quarter was like, I think, lowest in the last seven, eight quarters. Around this quarter will be around INR 197, I think. Correct. Correct. Which is like lowest. So, like, will the export volume will impact the Q2 also? It will, we'll see the same improvement over there in terms of the volume for the export. So would you like to answer about exports for Q2? Exports for Q2 also, we feel, subdued demand as of now. And moreover, freight rates have just moved up again, like with COVID levels. Now, some container freight containers are not available, and all that, such a situation is there. It's not related to Red Sea, actually, but some other things. So overall, we feel Q2 will be similar to Q1 in exports, and the demand will start coming up from Q3, looks like, as of now. Okay, great. Thanks. Yeah, that's from my side. Yeah. Thanks. Thank you. The next question is from the line of Pradeep Rawat from Geojit Capital. Please go ahead. Yeah, thank you for the opportunity again. So I have a question on margins. So, before COVID, our EBITDA margin was used to be in the range of 15%-16%, and right now it is around 11%-12%. So what is the reason behind that? So the most important reason for last two is, if you talk about last two, three years, in COVID, it has gone up because phenomenally high, but that was exceptional. But if you compare with respect to pre-COVID era, like you said, 15%-16% EBITDA margins were there. What had impacted the EBITDA margin for last two years was that the raw material prices had gone up sharply. Because of that, and it kept going up, and it... After reaching a certain point, then it started crashing as well. There was a lot of volatility, and because of that volatility, we were not able to keep sustainable gross contribution margins. Right now, our gross contribution margins are reaching to a certain means, you can say our targeted levels. We are still 1% away from that. However, for this current quarter, our volumes were quite low, and because of lower operating leverage, the EBITDA margins were lower. What we feel, had our volumes been decently good, probably we would have achieved around 14, at least 14% EBITDA margins for this quarter, if, if our volumes were good. That, that is why now we feel. And obviously, the industry has also changed quite a lot since pre-COVID era to now. However, we are trying to register more and more products in European market and try to increase our European sales. Because one of the important, you can say, differentiation of today's sales versus, 5- 7 years back sale, is that our export was almost 38%-40% at that time, which is right now around 31%-33% to the total standalone sales. And in export, generally, we get higher growth contribution. So that is also one of the reasons why the margins have got impacted. Yeah. Yeah, understood. And my next question is regarding our new product development. So what could be the potential of these products, especially that oncology product that we are developing? Yeah, Vishu, would you like to...? Yeah, sure. So yeah, we are developing about 15 oncology products over the next two years. And our total budget said revenue at peak revenue for the oncology segment is about anywhere between INR 300 crores-INR 400 crores, depending on launches and the market share that we get. So yeah, hope that answers it. Yeah, understood. Thank you. Thank you, and good day. Thank you. Thank you very much. Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference over to the management for closing comments. I would like to thank everyone for joining us today on this earnings call. We appreciate for your interest in Aarti Drugs Limited. If you have any further queries, please contact us directly or SGA, our investor relations advisors. Thank you, and have a nice day. On behalf of Aarti Drugs Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you. Thank you. Thank you.