Ladies and gentlemen, good day, and welcome to Vimta Labs Limited Quarter Four Investor Conference Call, hosted by Systematix Institutional Equities. 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. Vishal Manchanda from Systematix Institutional Equities. Thank you, and over to you, sir. Thank you, Sagar. Good afternoon, everyone. On behalf of Systematix Institutional Equities, I welcome you to the Q4 and full year FY 2024 earnings call of Vimta Labs. We thank the Vimta Labs management for giving us an opportunity to host the call. Today, we have with us the senior management of Vimta, represented by Ms. Harita Vasireddi, Managing Director, Mr. Satya Sreenivas Neerukonda, Executive Director, Mr. Narahari Naidu, Chief Financial Officer, and Ms. Sujani Vasireddi, Company Secretary. I'll now hand over the call to the company management for opening remarks. Over to you. Thank you, Vishal. Good afternoon, and a very warm, warm welcome to our Q4 and FY 2024 earnings call. Our investor presentation and the financial results are available on the company website and on the stock exchange. Please note that anything said on this call, which reflects our outlook for the future or which could be considered as a forward-looking statement, must be reviewed in connection with the risks which the company faces. The conference call is being recorded, and the transcript, along with the audio of the same, will be made available on the website of the company as well as on the stock exchange. Please also note that the audio of the conference call is the corporate material of Vimta Labs and cannot be copied, read, broadcasted, or attributed in the press or media without specific or written consent of the company. Now, now I would request our Managing Director, Ms. Harita Vasireddi, to provide you with updates of the quarter. Hand over to you. Thank you, Narahari. Good afternoon, everyone. Thank you for joining us today on our Q4 and FY 2024 Earnings Call. I first wish, I wish to share a few comments on how the economic and industry landscape has been over the quarter and for the financial year. The year global economy stabilizing and turning the corner with inflation being the retaliator. The critical Europe situation also impacted pharmaceutical testing to some extent, particularly in clinical research. Geopolitical issues, the Red Sea crisis, slowdown of Chinese economy, impacts of tighter monetary policy, and settling environment in investments and global trade have affected the economy as a whole. Over the quarters, we did see certain improvements that also helped our business get back on track, such as the easing of supply chains. Europe also showing resilience compared to the initial fears of war. Within the testing, inspection, and certification industry, we call this the TIC industry. We have witnessed a growing landscape of opportunities due to the implementation of stricter regulations worldwide. These ongoing advancements create a dynamic and expanding workload for businesses such as ours. Despite the market slowdown due to economic factors, the TIC industry remains well positioned for future growth, driven by the strengthening global economic climate. To address the rising demand within the TIC space, we are nearing the completion of our new life sciences expansion project at the Genome Valley campus in Hyderabad. Once the accreditations and validations are in place, this facility will be operational and will contribute to the growth of multiple service segments across our company. Coming to the services we provide and how they have been performing for us, our conceptual testing services are experiencing growth momentum. India's robust clinical research industry, fueled by cost-competitive operational environment, it presents a fertile ground for expansion. Established players, like us, are well positioned to capitalize on this landscape, enabling us to steadily expand our market share. Our clinical, preclinical, and analytical services saw a good uptick during the year. So despite being a very flat year, FY24, for Vimta, has been a very productive year. It was a year of investment. Not only has the company invested in its infrastructure, we have also invested significantly in building new partnerships. Projects have begun, which will scale up during the immediate years. The compliance bar is raised, so a lot of improvements have been taken up, and opportunities are big. Even though the customers are very demanding, the opportunities are very big. We are yet to provide adequate space for some of our new customers. From Q2 onwards, we will be able to allocate more space to them. So over the years, we have initiated long-term partnerships with global leading pharmaceutical and animal health companies. And also, we are excited about our recent foray into clinical trials, which we anticipate will be a significant growth driver of our future. Food testing, our second-largest segment, holds significant potential due to Indian government's increased focus on food safety. While economic and environmental challenges impacted our business in the first half, we witnessed a decent rebound in the second half due to improved supply chain, resulting in better sample volumes. Notably, our National Food Laboratory, located at JNPT, Mumbai, it is a PPP, established in collaboration with FSSAI. This lab has successfully completed its second year of operation. Given the volume growth experienced in H2 of FY 2024, we anticipate growth in the coming quarters. Our electrical and electronics testing division, encompassing EMI and EMC testing, represents our third-largest service segment. This strategic expansion was facilitated in March 2020, after the acquisition of EMTAC Laboratories, which has significantly bolstered our capabilities. Hyderabad's position as a prominent hub for defense industry positions us ideally to serve this sector, while also opening doors to opportunities in other industries. Given the rising demand within the E&E testing space, we plan to strategically expand our existing facility by adding new testing chambers in the coming quarters. Furthermore, we anticipate increased traction in this business segment due to the influx of foreign investments. The second half of the year witnessed improvement in sample volumes, translating into better performance compared to H1. Our quarterly total revenue reached INR 802 million, while for FY 2024, it totaled to INR 3,223 million. We have maintained our margins and wish to continue the same going forward. In summary, I want to express my sincere appreciation to the Vimta team for their strong commitment and resilience during the challenging period. Their dedication has been instrumental in propelling the company back to its earlier performance levels. Additionally, I commend the team on their success in regulatory audits by agencies such as USFDA, EMA, WHO, NGCMA, FSSAI, and DCA. These achievements demonstrate Vimta's commitment to quality and excellence. To conclude, we remain focused on the growth drivers going forward and are confident on achieving our revenue goal of INR 500 crore by FY 2025, 2026. With this, I hand over to our CFO, Narahari, to discuss the financial highlights for the quarter. Thank you, Ms. Harita. I would like to walk you through the consolidated financial performance for the quarter, as well as the year ended 31, March 2024. After which, we can open the floor for question and answers. I'll start with the consolidated financial highlights for the quarter. Revenue from operations for quarter four, FY 2024, stood at INR 797 million, as compared to INR 818 million in Q4 of FY 2023. EBITDA stood at INR 249 million in Q4 of FY 2024, as compared to INR 248 million in Q4 of FY 2023. EBITDA margin for the quarter improved sequentially by 353 basis points to 31.1%. And on a YOY basis, the improvement is about 95 basis points. Profit after tax in quarter four, FY 2024, stood at INR 123.5 million, as compared to INR 125 million in Q4 of FY 2023. PAT margin for the quarter improved sequentially by 310 basis points to 15.4%, and on YOY basis, PAT margins remained stable. Moving on to full year performance. Revenue from operations for FY 2024 stood at INR 3,183 million, as compared to INR 3,182 million in FY 2023, showcasing flat performance. EBITDA stood at INR 908 million in FY 2024, as compared to INR 984 million in FY 2023, translating to an EBITDA margin of 28%+. Profit after tax in FY 2024 stood at INR 410 million, as compared to INR 482 million in FY 2023, translating to a PAT margin of 4.7%. On the balance sheet side, we continue to have a net debt-free balance sheet, with cash and cash equivalents, including other bank deposits, of INR 258 million. In summary, focus on margins have led to strong cash flow generation of INR 609 million during the current financial year. I believe we'll continue to generate strong cash flows in the coming years. CapEx for the year stood at INR 763 million. Coming to update on financial project CapEx. As you all know, we are doubling our capacity. We'll be inaugurating our new life capacity as soon as the certifications and validations are received. The capital expenditure on the new project was close to INR 370 million for the year ended thirty-first March 2024. Before I conclude, I would like to highlight that we have paid back INR 52 million debt during the year. Current total borrowing stands at INR 192 million, resulting in a debt-to-equity ratio of 0.06 times. With that, we can now open the floor for Q&A. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone phone. If you wish to remove yourself from the question queue, you may press star and two. 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 Rahul Jain from Credence Wealth. Please go ahead. Hello, am I audible? Yes, sir. Please go ahead. Thanks for the opportunity. Ma'am, with regards to the CapEx on the pharma side, we were supposed to start this facility somewhere in March. So as we speak today, when could this facility basically start commercial? The starting got delayed by a couple of months. So we will be ready to move into the new facility early June. So during June, we will do all the shifting, because we are moving from the existing premises to the new building, in the food and preclinical business unit. So that will start in June. Once we start doing that, then the equipment qualifications, validations, we'll also need to get, an NABL accreditation for food lab for the new location, although it's in the same premises. So all that might take a couple of more months. So that means this could actually, commercial operation could, in full-fledged, start by somewhere around September, October? Commercial operations, I think we can begin in Q2. Okay. And, ma'am, with regards to our guidance of about INR 500 crore by FY 2026, what gives us confidence that we can still reach that number, given that FY 2023 has been flattish? Our pharma CapEx, which is our major driver or the major segment contributing to the top line, the CapEx also has been delayed. So how do you perceive this INR 500 crore to be achieved? The confidence comes from our visibility of how our partnerships are scaling up on the pharma side, especially, and also some new services that we have, I would say, capabilities that we have added during the previous financial year. Now, we've had good traction there, and although these are just preliminary, you know, projects that we are into, I think once we have a track record of doing those projects well, they can scale up quite nicely for us. So pharmaceutical will continue to be a major growth driver for us. Food and electronics also, and because the environment is very promising, new investments are happening in and around where we are. So that's where our confidence comes from. Mm-hmm. So do I anticipate or assume that there are certain big companies, big clients, who probably have given some kind of, you know, assurances that once the lab starts, we are in from certain large volume businesses? Yes. No, these don't come in the form of assurances as such. It all depends on how well we are able to service them. Like I mentioned in my commentary, we have initiated relationships with some large companies, and that was done early previous year itself. So whenever such large companies come, it takes time. You know, proof of concepts have to be built, and then there is an expectation on the compliance level. We have to bridge those expectations. So we took about, not only this last year, we took up close to 18 months working on that, and now it has come to a place where we can pick up speed once we are able to provide them more space. Ma'am, this delay in CapEx, somewhere is it also due to some specifications when you are talking to your large clients based on their needs? Maybe you have changed some plans compared to the initial plans in terms of the lab specifications, quality, various other stuffs, which could probably be in the interest of these large customers whom we have been talking to for last 18 months? So nothing of that nature. In fact, this project is a very fast-track project. You know, I think other than Winter, there would be few other companies who can build and commercialize such a large facility in a short period of time. We are obviously always more ambitious than our previous track record. So we were targeting March, but the two months extension is not a big deal. I think we are still doing great speed on that project. Sure. And, ma'am, on the CapEx side, with this CapEx getting completed and also some INR 4.5-5 crores to be done on one electronic chamber, do we need any further large CapEx to achieve that INR 500 crores? CapEx will be a continuous requirement. It all depends on the opportunities that come our way. Typically, and I keep saying this, I think in almost all the interactions with investors, typically our CapEx is equivalent to the depreciation amount, in our P&L. Mm-hmm. Over and above that, we spend wherever, you know, we think more capacities are needed to push growth or new capabilities require some special technologies. No, ma'am, my question was, is the current CapEx, which is getting completed in, say, next couple of months and another INR 5-6 crore on the electronics. Does that give you a capacity which can give you a top line of INR 500 crore? It definitely gives us the capacity, but what I was trying to say is, we have a certain product mix in our mind, especially when you're talking electronics and electrical testing segment. We have a certain product mix. Now, the chambers and the testing tools that we have will not cover everything that is manufactured, right? So it will cover a certain scope, and we anticipate that certain industries will move faster for us in terms of conversion into customer base. But if some new opportunity comes up and that technology, that instrumentation is not available with us, we might want to, you know, invest at that time. So at this point of time, I can't really specifically answer that question. Got it. Two quick questions, ma'am. One, on the labs. The number of labs in the current presentation stands at 17 compared to 19 in the previous quarter. So have, that has reduced from 19 to 17. Yes. I had indicated that we will be retrenching some of the expansion that we have done on our diagnostic side, so that is what has happened. Kolkata and Delhi, we have removed our operations. Sure. One last thing. Ma'am, in your initial commentary, you did mention that opportunity is big, but the customers are demanding. Just to understand this statement much more in depth, key, when you say customers are demanding, that would relate to the pricing part, the quality part, and will this large opportunity come at a lower margin? Is that the way to think? That's my last question. Good question. The large opportunity will not come at a lower margin. It will come at a good margin. But, we work in a, regulated environment, GxPs, and when you work with large companies, especially on the pharmaceutical side, their expectations in terms of data security compliance are much higher than what a regulator like USFDA or EMA would expect. So there will be investments on strengthening our systems. We have done a lot of investments on the IT infra side, to provide more confidence on data security and availability. So those are the kind of stringencies, that I was referring to when I made that statement. Sure. Thank you so much, ma'am, and wish you all the best. Thank you. Thank you. The next question is from the line of Ankit Gupta from Bamboo Capital. Please go ahead. Yeah. Thanks for the opportunity. My first question is on the pharma segment, where we had mentioned in our press release that we have expanded our offerings to include clinical trials as well, and we anticipate this to be a major growth driver for our future growth. So if you can elaborate on that, and you know, earlier we used to indicate that, you know- Please repeat, question. We couldn't hear you. It was too feeble. So, I was asking about, you know, in our press release, we mentioned that we have started clinical trials as well, and we expect that to be a major growth driver for us going forward. So if you can expand on that, and, you know, in our earlier calls, we had mentioned that, you know, clinical trials were difficult to do in a city like Hyderabad. So what has changed now? And, you know, if you can elaborate more on this. Clinical trials were difficult to do in Hyderabad, and this statement, I think, relates to our experience with our first foray into this service segment almost a decade back. Ever since then, there's been a lot of change. The ease of doing clinical trials in the country has also improved. So we have revisited the idea of getting into clinical trials, and we were able to win our first contract late last quarter. And these projects, although they are long term, some finish off in 12 months, some take even 3 years. They are very large projects in terms of their value also. So once we are able to build a good track record and establish ourselves as a reliable partner for the pharma company, then this can be a good strong revenue-adding stream for the company. Sure, and if you can, like, what kind of opportunity size we can look at in the clinical trial segment? And, you know, how much revenue do we expect from this segment over the next 2-3 years, given, you know, we have started getting contracts from our clients, from our customers? Revenue projections I will not make because we don't do that. It's a part of our clinical research business unit. So we'll be unable to put a number on that during a call. But the growth opportunities are good, because if you go and look at the DCGI site, you can see the number of clinical studies that are registered there, you know. And, because of the ease of doing clinical trials, other countries are also looking to expand their multi-country trials into India. This has already begun, not that this is something new that is happening. It has already begun, and I think the pace is good at which, you know, the studies are getting added into the country. It's a good pace. And I think, although we are a late entrant, we have very strong brand for quality in this industry. We will be leveraging the brand that we have, and we hope to make speedy progress. Sure, ma'am. And, on the food testing side, you know, of late, there has been a lot of things going on in the media regarding, you know, the kind of ingredients which are there in many of the packaged food.... So does that lead to an increased opportunity for us, or are we seeing more traction with, you know, increased pressure on FSSAI to be more stringent on the ingredient side, especially for packaged foods? Yes, I think the regulators already stepped up their vigilance on that particular segment of food, and we see the sample inflows also increasing for us in those spices. So, spices as well as other packaged foods, the large multinational companies have been. You know, there have been some issues regarding the ingredients which are there in those products. Yeah. Right now, I think the spotlight is on the spices. EPO has been on the spotlight earlier to this. So these things keep coming up, something or the other keeps coming up continuously in the food industry. Sure. So, and, ma'am, any update on the JNPT lab? You know, any improvement there, you know, any clampdown by the authorities on, you know, samples which are getting diverted to other labs? The last month has been pretty encouraging. The sample volumes have really picked up, but there have been lull periods where, you know, it's we are experiencing extremes in terms of volumes. So I don't know if we are at a steady, stable state yet. Very early to comment. I think once we go through a couple of more months, we'll understand, you know, where this is going. Sure. And then, just last one question. May we request you return to the question queue for any- Sure, thank you. Thank you so much. The next question is from the line of Madhur Rathi from Counter Cyclical Investments. Please go ahead. Thank you for the opportunity, ma'am. Ma'am, I wanted to understand this Q2 commercialization of our pharma facility. So, ma'am, this will be including the certification and approval we need, or that will take additional time for to come in? Hello? By Q2, we will begin our and almost complete all our validations and qualifications. As soon as we are done with that, you know, we have to apply to NABL, and we can request them for a speedy review because we are in the same facility, although it's a new building. So that's a request that we will make to them. So margin, so, like, revenues should start coming from Q3 onwards? Revenues, per se, there is no new revenues coming because of the location shift, because food business, we are only moving from one building to another. So during this shift, there will be a time where we will take some, few weeks, to transition. But, for food as such, capacities were not a great constraint even during last year. No, I was talking about the pharma facility that we are coming up. Yeah. So pharma will not need any additional approvals or certifications. We already have them. So this is just an expansion of the pharma facilities that we have, especially on the preclinical side. Analytical, yes, we will have to redesign some of our laboratories for better flow, and that will happen throughout this new financial year. As and when we need, we will quickly build those quadrants and move into them. Okay. Ma'am, our margins are very encouraging for this quarter, like, as you had guided in the previous con call. So do we see our margins having some kind of pressure as the new facility comes up and the costs to the operational costs go up? So can we— It's, like, will there be a margin pressure kind of a scenario for FY 2022? As a company, we have put a lot of trust and focus on margins of our various services. So during the year, we have actually restrategized our service portfolio. We have dropped some services, although, you know, we had maybe decent business from those services. The margins were very low, sometimes, you know, not even existing. Those are some tough calls we have taken, and we will continue to take them, because you cannot transition so quickly on all of them. But the transition has become where we will be very actively looking for increasing our margins. So therefore, wherever we are not able to grow the volume for that service and where we see diminishing returns, then that is something we, we'll probably take a hard call on, as we have done during the last year. Okay, so, just to add to what Renu has said. In terms of margin, margins for the current financial year is at 25%. We don't see any significant, you know, impact when it comes to margins because the facility what we are adding is the building. So all other operational expenditure will be in proportion to the revenues. So we, we do not have significant impact in terms of the achievements. PBT also we will be back to the current year achievements. Okay. What kind of timeline do we see to scale up this facility so that... And what will be the peak revenue potential? Like, based on an ideal mix that you would like from the services that we provide, just a ballpark number would work again. Okay. Can you please come again? So I, this is the question what I understood. So you are trying to understand what is the peak revenues it will achieve once we commence the new facility? Yes, and what would be the timeline to scale up this facility to an optimum level? So, when it comes to facility scale-up, our revenue guidance, whatever we have, we have given so far, so that holds good. So, you know, till April 2026, we have given a guidance of INR 500 Crores. So that is starting in the new facility. Probably the capacity what we have for being is, you know, we may see around 600-700, 700 PS, when we occupy the full capacity. This is total on our total gross assets, right? Yes. Or just the new facility. That is for the total. Okay. Thank you, sir, and all the best. Thank you. Thank you. The next question is from the line of Keshav Garg from Counter Cyclic. Please go ahead. Sir, I'm trying to understand that who would be our nearest competitor, and also, sir, is Eurofins present in India as our competitor? We have different competition for different service segments. For pharma, on the analytical side, there are several laboratories, but nobody at our scale. Eurofins is one of the competitors for preclinical. They're not as big as us on the analytical side. Clinical research, there are several CROs. The large ones will be Lambda, Veeda, Cliantha. Food, again, is a very busy industry with hundreds of food testing labs, but the larger ones are mostly MNCs. We still lead in the food segment. So in that industry, you have SGS. Eurofins is also a competitor. You have Bureau Veritas, you have Intertek, many, Cotecna, there are many. On the E&D side, electronics and electrical testing side, again, many small laboratories, but the large ones belong to, again, MNCs. You have TÜV Rheinland, you have Wipro, which is a Indian company. SGS, Intertek. SGS, Intertek. They are mainly our competitors. So, madam, basically what I'm trying to understand, madam, since pharma industries are biggest customer, so, madam, is there any threat that as the industry keeps on growing and the players get bigger and bigger, they might shift some of the lab work in-house, which they are currently giving to us? Is that a reasonable threat? It's not a threat uncommon to any business, I would say. Competition is always there. Okay, madam. And, madam, what is our USP? That means we have so many different verticals, pharma, food, electronics, et cetera, whereas most of our competitors would be in a single vertical. So, madam, is there any synergy between our various verticals? Is there some common manpower? Or, madam, what would you say is our USP wherein we score over the competition? The idea behind going into several such segments is to basically have a strategic mix, where the business itself is highly de-risked. So, sometimes industries go through, you know, peaks and troughs. And when you have such a mix as varied as what we have, like food, pharma, electronics, environmental testing, and so on and so forth, this mix takes good care of any, you know, shocks that some of the industries might be going through. So it's a very good model that way. I wouldn't call it a USP, I would say it is a strategy, and it also mimics the large global companies in this industry. Now, if you take Eurofins or TÜV Rheinland, SGS's of the world, their mix is similar. So we are not unique in that aspect. Because we are one of the largest in the country, you know, our mix is also similar. Coming to our USPs, I think the largest USP we have is the integrated pharmaceutical services that we have, end-to-end, right from preclinical to clinical research. And our entire analytical is there to support the entire drug development or discovery process from preclinical to clinical research. That's one of the major USPs. The second most valuable USP that we have is our culture of quality and excellence. So, madam, are we able to command any premium over the competition? And, madam, on the cost side, do we... is there any advantage that we enjoy? Like, going back to the previous question, is there any synergy as far as manpower or other costs are concerned between our various verticals, which give us some kind of cost advantage vis-a-vis the competition? Coming to having common resources, normally we don't. That's not how we normally operate. But if something is experiencing high volume, you know, one particular segment, then we are actually able to push more resources there. So that's the advantage we take of the commonality of technologies that we have cutting across various services. The first question was? We have price advantage. Coming to the price advantage, definitely. But, in services that are commoditized, we are actually competing, but definitely a price advantage is there. A premium is there for the quality that Vimta provides. Madam, lastly, the clinical trials that we are planning to enter, madam, in the initial few quarters, will there be some losses from that new business vertical, or it will break even since the beginning itself? This year it will break even, but we have set up the team almost a year and a half ago. This year it will break even. So, madam, there should be no adverse impact on the margin, since, like you mentioned, already we have the manpower, etc., since the past one year, which must be already accounted for in the expenses. No, no, there will not be any impact of that on the margin. Great, ma'am. Thank you very much, and best of luck. Thank you. Thank you. The next question is from the line of Ravi Agarwal, from Agarwal Investment. Please go ahead. Hello? Yes, sir. Hello. Go ahead. Ma'am, my first question is, Sorry to interrupt, Mr. Agarwal. You are sounding very much muffled, so may we request you use the handset mode, please? Yes. Hello, now it's audible? Sir, it's still not that clear. Just a moment, please. Mm-hmm. Now it's audible, sir? Uh- Hello? Ma'am, can we hear him clearly? We will try. Let me- Hello, now it's audible? Sir, you are audible, but the clarity is not there. Hello? Yes, sir. Hello, my question is, I am totally new to this company, and I wanted to understand exactly what we are doing at JNPT. I mean, as I think, that we are doing test of food item, which we are importing from other country? Sorry, it was not audible. There's no clarity. Ma'am, my question is, I want to understand exactly what we are doing at JNPT. JNPT? Yes, JNPT. Food testing lab. It's a food testing lab. We are operating it for the government. Okay. Whatever the food item we are importing from other countries, so we are doing testing of that? We don't import. We just test the samples. Okay. Okay. Okay. And, whatever the food items we are exporting, in India is exporting, whether we are doing any test, means our company is doing any test for that? Export testing. We do testing for exports also, yes. Yes, okay, ma'am. And, ma'am, when any PG, FMCG type of company launch any food range or snack type, do you have any opportunity for our company from the government agency to have any roles to play? We support FMCG companies for their quality testing. Yes, we do. Okay. And, ma'am, whether we are doing only preclinical or clinical work, say, phase I, phase II, and phase III for the innovator or larger company, do you have any joint venture for any CDMO type of company in India or abroad? Which type of some company, sir? You said preclinical and clinical, for what? Sir, we are doing only preclinical and clinical work. But, after clinical work, whatever the manufacturing or development is required, do you have any joint venture with some other company? No, sir. Currently, we don't do any manufacturing and development of products. We only test the products. Okay. No manufacturing. Sir, what is the future prospect of our lab in Genome Valley? At present, we are earning any revenue from Genome Valley? CAGR value we are seeing. Sorry, can you repeat the question? Yes, sir. What are the future prospects of our company in Genome Valley? What are the business prospects of our company in Genome Valley? Genome Valley, yes. Harita already communicated earlier, I mean, this is a testing organization, and Genome Valley is one of our largest laboratory sites. Mm-hmm. We have total of... I mean, after we commence our new facility, we will have 600,000 sq ft of testing area. Out of that, 50% of the space is in Genome Valley. So all the pharmaceutical product testing, our major food product testing, and electrical and electronic testing happens out of Genome Valley. Okay, okay. Okay, thank you. All the questions are covered from my side. Thank you, sir. All the best. Thank you. Thank you very much. Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question is from the line of Ankit Gupta from Bamboo Capital. Please go ahead. Yeah, thanks for the follow-up. So then, you know, trying to understand the trajectory of growth for- Can you speak a little louder, please? Your voice is low. ... Sure. So I was asking, you know, we have been stuck in the 70-80 crore kind of a quarterly run rate for the past 10-11 quarters. With this new CapEx coming in, can we expect a breakout from, you know, this revenue range over the next, you know, if not Q1, at least from Q2 onwards, then this, the new, the new facility comes online? Yes, we can expect a break from that, INR 80 crore level, definitely. Sure, ma'am. And then, you know, like, as you have highlighted, you know, in our earlier calls as well, with the scale-up in revenues, we can definitely see improvement in margins. So does that hold true with new services, like clinical trials also being included in RCT? Margins, the ones that you've seen in Q4, they were pretty good. What we aim to do is maintain those margins in this new financial year as well. Sure. Okay, okay. Okay, thank you, Nishima. Thank you. The next question is from the line of Chirag Jain from Yogya Capital. Please go ahead. Thank you for the opportunity. I had just one question. How much land bank would be available post our expansion has been complete? So that was the only question. Now, we have capped it. No more land bank. Okay. So we will be in future, we will be doing only a greenfield? Or a brownfield. Mm-hmm. It could be anything, depending on the opportunity. So, you mentioned that we don't have any land bank any further, so it would be only green, greenfield, no, ma'am? We could buy an existing business also. Okay. So are we looking at any inorganic opportunities? Nothing as of the moment, but if something comes up, then definitely we'll speak to you. So, we would be expanding in the current segment or in the segments we don't have a revenue from? Possibilities are there in services that we don't currently have, and also maybe in the services that we have already. So it's wide open as of now. Okay. Thanks. Thanks for the opportunity, and all the best for the future. Thank you. Thank you. Thank you. Participants, if you wish to register for a question, please press star and one on your telephone. The next question is from the line of Anurag Agarwal from Agarwal Analytical Investments. Please go ahead. Thank you for the opportunity, ma'am. You had mentioned that we had already hired employees for our new factory, which is about to commence operation in couple of quarters. And so ideally, the cost has already been absorbed. So once the revenue scales up, don't you think there is an optionality of increasing the margins? The hiring we have not done for the entire year. What we have done is for Q1, and we're ready with Q2. So as our revenues grow, then we will be adding more people. Okay, got it. On the second question, ma'am, I just wanted to understand the revenue bifurcation in terms of services like vis-à-vis food, electronics, pharma. So pharma is our largest, around 60%-65%, and food and pharma put together are about 80%, and the remaining three segments are the 20%, electronics, environment and diagnostics. Got it. Ma'am, you had mentioned that we have seen increased volume from the spice vol testing. Like, recently, there have been many cases relating to food safety regulation. Do you not see any other inquiries or increased demand in other segments apart from spice currently? No, there is a sudden spike, especially around the issue that happened with respect to spices. But otherwise, everything else is, you know, business as usual. There's a demand that is already in the market, so nothing new happening there. Okay. Okay. Ma'am, longer term, do you see any structural tailwinds for our industry in India? Yes, I think for long term, that is a possibility. Today, it's quite fragmented, but, large players, if they wish to grow, then, we will see some, I think, merger acquisition kind of activity. Already, all the MNCs that are here have, entered into the country and then have, walked that path. Going forward, I think they will continue. That has been, typically the strategy that large companies follow. Okay. Got it. Thank you, ma'am. That's it from my end. Thank you. Participants, you may press star and one to ask a question. The next question is from the line of Chandpal Singh Virk, who is an individual investor. Please go ahead. Hello? Hello, am I audible? Yes, sir. Please go ahead. Okay. Ma'am, my question is on the JNPT side. Ma'am, it's been two years. What will it take to keep, to grow the business? So it has taken a lot of time. Growing the business is not really the strategic intent of that facility. We are operating it for the regulator. It's a PPP model, so we run that lab for FSSAI, so the samples are also given by FSSAI. That site particularly caters to all the imports, food imports into the JNPT port. So when the containers come in, the officials do the sampling and send the samples to our laboratory. So there is no activity per se from Vimta Labs on growing that business. We only do what comes to the door. We test what comes to the door. Ma'am, not all the samples are coming to Vimta Labs? Yes, they don't. Because there are other labs, and government has decided that they will distribute some share to the other labs also. Can I know, around a ballpark figure, what will be the business we are getting from the JNPT? That is confidential. Even I don't have that information. Okay, ma'am. Ma'am, second question on the clinical diagnostic part. We have reduced 2 labs, if I'm not wrong. I just heard in the con call, and we are decreasing the number of labs, while the other diagnostic companies are increasing their business at 25, 20%-25%. Yes. That's the business segment that we had good ambitions for, but we could not push our strategy through. That's why we said we are rolling back our B2C plan. We will continue to be a B2B service organization. So it's not going to be a strategic business unit for Vimta. So we will continue to push our services to the Pharma, Food and Electronics segment majorly. Ma'am, the diagnostic part could have provided the required impetus for the growth of the company. It's a very... It's a market that has strong headwinds. We have been in this industry for almost two decades, and we are very strong, still very strong in some of the states. But the price pressures ever since COVID have been humongous because of the new companies that have come in, the large investments that have flown into this sector. We are unable to compete given our scale. To compete, we would have to do major investments, and we tried out. We tried out with some expansion in major cities, but we decided this is not something that we want to pursue. This is very different from the other businesses that we do, so we are a more B2B company. Okay, ma'am. But my major concern was regarding the growth of the company. As expected, the sales of INR 500 crore projected by the company, will we be able to reach those figures in the time, at the time? Yes. This year and the next year, we have to really push on the numbers, and that is our effort. Okay. Thank you, ma'am. That's, that's all from my side. Thank you. The next follow-up question is from the line of Anurag Agarwal from Agarwal Analytical. Please go ahead. Thank you for the opportunity again. Ma'am, recently in the U.S., there has been an act, a bill, which is about to be passed, called BIOSECURE, which will kind of hamper the research funding in China specifically. So could that be a positive for us? Definitely a positive, and we have actually seen the impact of that almost from more than a year ago. I think it will give a further push. Many companies are looking at alternatives to China, and India stands to win in that proposition. Okay. So considering pharma is our biggest segment and there could be an additional push, and there is already a push from foreign companies for research and everything in India. So don't you think our guidance could be a little conservative? No, I don't think it is conservative. I think it was ambitious when we took it as well. Yeah. Okay. Last question, ma'am. You'd mentioned that we were a little late entering to clinical research, if I'm not wrong. You'd mentioned in this call, and you also mentioned that in the diagnostic side, we could not scale up as quickly as our competitors did, and which raised a lot of capital and went big into diagnostics. So, have we been able to? Have we failed to, you know, capitalize on certain opportunities where we identified them a little late? And what was the reason behind it, or in future, how can we ensure we can capitalize on the opportunities which would, you know, help us? So... Coming to diagnostics first, we will have to push in a lot of money, and wait for the results to come. If you are closely tracking any of these, large investments that have happened in diagnostics, you'll see that there's a lot of bleeding happening. We didn't want to. We chose not to take that kind of a strategic path for the organization. We are a profit-making organization, and we want to continue doing that, rather than, you know, pumping a lot of capital and waiting for a chance to come. That's not something that we were interested in doing. Coming to pharma, especially clinical trials, we did. We are an early entrant actually in clinical research, not a late entrant. I was only referring to clinical trials. Clinical trials, we wanted to get there, you know, but the environment, business environment, especially in the States, was not very conducive. So that's when we said we are not going to risk it, because when we took this decision, the company size was maybe half of the current revenue. So we didn't want to put majority of our eggs in the in that basket. So that's when we ramped up our analytical work. We ramped up, we invested in pre-clinical. So at every juncture, you know, there are choices for a company to make, and we have always made those choices in the long-term interest of the organization. Got it. Thank you, ma'am, for the detailed answer. Thank you. The next question is from the line of Mr. Vishal Manchanda from Systematix. Please go ahead. Thanks for the opportunity, and good afternoon, everyone. Ma'am, my question is, in your opening remarks, you talked about a large pharma partnership that's materializing for you. Is that which segment of the business does that pertain to? So is it clinical trials, pharma analytics, or pre-clinical? It is analytical. Uh, sorry? Analytical. Analytics. Analytical. Okay. So is this a long-term relationship you would have with them on the analytics or a contractual project-based relationship? It will be long term. Okay. Okay, and is this with an innovator or a generic company? Innovator. Okay, ma'am. And just one more on the clinical trials that you have initiated. Would this be for an NCE asset or a complex generic asset? It is a complex generic. Got it. Got it. This would be kind of a 3-month, 6-month duration trial or long- It is an 18-month trial. 18 months. Got it. Yeah. Thank you very much, ma'am. That's all from me. Thank you. As there are no further questions, I would now like to hand the conference over to the management for closing comments. I thank everyone for participating in the call today, and I also thank Systematix for hosting the call. Wish you all a good day. Bye-bye. Thank you. Thank you. On behalf of Systematix Institutional Equities, that concludes this conference. Thank you for joining us. You may now disconnect your lines.