Ladies and gentlemen, good day, welcome to Jubilant Pharmova Limited, earlier known as Jubilant Life Sciences Limited, Q3 and nine months FY 2021 earnings conference call. As a reminder, all participant lines will be in the listen only mode, there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal the operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Hemant Bakhru, Head Investor Relations. Thank you, over to you, Mr. Bakhru. Thank you. Good evening, everyone. Thank you for being with us on our Q3 FY 2021 earnings conference call. Please note, effective 1st February 2021, the Life Science Ingredients business stands de-merged into Jubilant Ingrevia Limited and has been classified as discontinued operations in Q3 results. Further, name of Jubilant Life Sciences Limited has been changed to Jubilant Pharmova Limited effective 1st February 2021. I would like to remind you that some of the statements made on the call today could be forward-looking in nature, and a detailed disclaimer in this regard has been included in the press release that has been shared on our website. On the call today, we have Mr. Shyam Bhartia, Chairman, Mr. Hari Bhartia, Co-Chairman and Managing Director, Mr. Pramod Yadav, CEO of Jubilant Pharma, Mr. Rajesh Srivastava, CEO Jubilant Ingrevia, Mr. Syed Kazmi, CEO Jubilant Therapeutics, and Mr. Arun Sharma, CFO. I now invite Mr. Shyam Bhartia to share his comments. Over to you, sir. Thank you, Hemant. Good evening, everyone. I hope you all are in good health and keeping safe. We are pleased to report a strong quarter across all business segments. Despite enhanced restrictions and closures in several U.S. states due to COVID-19 pandemic over the last few months, pharma business registered a strong EBITDA growth, especially led by new business signups in CMO announced earlier in H1 FY 2021. Generics and API segments did well, too. COVID-19 continued to impact the Radiopharma business due to increased restrictions in U.S. allergy business had also reached at pre-COVID levels during Q2 FY 2021. Also saw a bit of impact on volumes due to COVID-19. We continue to see new business opportunities in CDMO, generics, and specialty pharma segments. LSI segment's performance continued to be strong quarter-on-quarter as well as year-on-year EBITDA growth. Our contract research and development services witnessed strong growth led by healthy demand from customers during the quarter. We continue to expect strong performance in our businesses in Q4 FY 2021. The company reduced its net debt on a constant currency basis by INR 570 crores in nine months FY 2021. This is in addition to INR 514 crores reduction in net debt during FY 2020. We remain focused on further deleveraging by generating healthy cash flows. We received final NCLT order approving demerger of our LSI business. Demerger creates separate and focused entities for pharmaceutical and life science ingredient businesses that will help in unlocking shareholder value. The life science ingredient business will stand demerged into Jubilant Ingrevia, which will be listed in NSE and BSE with a merit shareholding of Jubilant Pharmova, earlier known as Jubilant Life Sciences. I take this opportunity to thank all our employees who have worked tirelessly across all our plants and offices to ensure continuity in company's operations while continuing to serve our global customers. With this, I hand over to Pramod to discuss the pharma business. Thank you, Mr. Bhartia. A very good evening to all of you. We had a very strong quarter for pharma, with Q3 revenue growth at 17% year-on-year, led by strong performance in CDMO and generics. CDMO revenue grew 66% year-on-year and 28% quarter-on-quarter. We continue to see a strong outlook for the segments on back of five deals signed in H1 FY 2021. As highlighted earlier, the five deals that we signed in H1 FY 2021 could contribute up to INR 500 crore in revenue over the next 12-15 months, depending upon product approvals by the U.S. FDA. We have realized approximately half of this. We do see potential upside to this revenue and will update you as we get greater visibility. We have been manufacturing remdesivir for Gilead. We also started contract manufacturing of Eli Lilly’s Bamlanivimab, a drug that has been granted emergency use authorization by the FDA for treatment of COVID-19, and COVID-19 vaccine candidate NVX-CoV2373 of Novavax, a biotechnology company developing next generation vaccines for serious infectious diseases. As highlighted earlier, CMO capacity was expanded via debottlenecking initiatives, including new line installations and 24/7 operations in all areas, including inspection and packaging. We are excited about the new business opportunities in the CMO business. Within CDMO, API business grew well on back of the volumes. We are pleased with our generics business, which experienced a 57% year-on-year increase in revenue for the quarter, driven by launch of remdesivir in India and other licensed countries, and also limited competition in select products in the U.S. market. We remain confident of continued growth in this business. With increased closures and restrictions across numerous states, and the recovery in specialty pharma, both Radiopharma and Allergy businesses, has been impacted. Specialty pharma segment revenue declined by 24% year-on-year. Hospitals continues to prioritize treatment of COVID-19 cases. Further, there is continued impact on non-procedures to avoid risk to medical staff. We have had first commercial launch of RUBY-FILL in Europe in Q3 FY 2021. We are also focusing to expand specialty pharma business in international markets. EBITDA for the quarter was at INR 499 crore as compared to INR 411 crore in Q3 FY 2020. We continue to execute on our strategic initiatives across the businesses and expect strong performance in Q4 FY 2021 as well. Our Roorkee dosage form and the Nanjangud API manufacturing facilities have already completed remediations with respect to warning letter and official action indicated issued by the U.S. FDA. We are awaiting U.S. FDA inspection. We are confident that our remediation efforts and engagement with the U.S. FDA will soon result in OAI and warning letter status for our two manufacturing sites. We are pleased to report that our manufacturing facilities in North America and India have been fully operational through Q3, notwithstanding increase in COVID-19 cases and restrictions across numerous states in the U.S. With this, I hand over to Rajesh to provide insight into LSI and contract research and development services business. Thank you, Pramod. Very good evening to all of you. I would like to start by highlighting that despite the challenging market scenario due to COVID-19 pandemic, Life Science Ingredients business segment reported EBITDA of INR 155 crore, which is higher on year-on-year as well as quarter-on-quarter basis. Our Q3 FY 2021 EBITDA margin is at 17.4%, which is up 483 basis points year-on-year. I am pleased to inform that we continue to have normal operations at all our facilities without any disruption. In our specialty chemical business, pharmaceutical segment witnessed significant improvement in demand, though agrochemical segment demand was lower due to inventory corrections by companies. Our nutrition and health solution business has shown strong revenue growth of 27% year-on-year during the quarter. Business performance was supported by price recovery in vitamin B3 and other products from low levels of FY 2020. Vitamin B3 business demand picked up in Q3 after the destocking seen in Q2. We continue to see this strong demand going forward. Our Life Science chemical business delivered revenue growth of 14% year-on-year, led by strong demand of all the products, including acetic anhydride in domestic and export markets, driven by higher demand in pharma and consumer segments. We continue to focus on optimizing product portfolio to improve margins in Life Science chemical business. Overall, LSI segment revenue was at INR 893 crore as compared to INR 797 crore in Q3 FY 2020. As informed in the previous quarter, we expect LSI business to achieve close to double-digit growth in revenue and significant growth in EBITDA and higher margins and a very healthy cash generation in FY 2021. Our contract research and development services business continued to deliver healthy performance during Q3, driven by strong demand from biotech companies, from integrated services and functional chemistry. The business has healthy pipeline of new contracts and customer acquisition. Q3 FY 2021 revenue increased by 17% year-over-year to INR 79 crore. EBITDA stood at INR 29 crore, 30% year-over-year. As we informed in the previous quarter, the business has committed investment to double the chemistry research facility. Project is progressing very well. We expect the facility to be ready by end of Q1 FY 2022. With this, I now hand over to Syed to discuss the proprietary novel drug pipeline. Thank you, Rajesh. In our innovative therapeutics business, we are working on more than four programs to deliver precision medicines focused on both first-in-class and validated but intractable targets to address unmet medical needs in the area of oncology and autoimmune disorders. Our first-in-class lead programs, LSD1/HDAC6 dual inhibitor and PAD4 inhibitor, which are the most advanced in the class today, address multi-billion dollar segments in hematological malignancies, solid tumors, and autoimmune disorders such as rheumatoid arthritis. These two lead programs are undergoing investigational new drug studies, IND studies, with a goal to file INDs and initiate first-in-human clinical studies in second half of FY 2022. We presented efficacy and biomarker data at the annual meeting of American Society of Hematology in December 2020 for the novel dual LSD1/HDAC6 inhibitor for the treatment of hematological cancers. The lead molecule, JBI-802, showed a stronger and more potent anti-tumor effect than the standalone inhibitors in multiple AML pre-clinical models. We are also excited about the potential biomarkers we have identified, specifically for the dual inhibitor, which will be highly valuable in identifying sensitive patient populations and the evaluation of treatment response in clinic. For our first-in-class PAD4 program, we recently announced a research collaboration with the Wistar Institute in Philadelphia to evaluate our inhibitors in reducing severity of COVID-19 pathologies due to cytokine storm. As we strive to transform Jubilant Therapeutics into a clinical-stage company, we are fortunate to have Dr. Robert Glassman join us as independent non-executive board member recently. Dr. Glassman has worked as senior investment banker at Merrill Lynch and as vice chairman, health care group at Credit Suisse. Dr. Glassman is now with OrbiMed Advisors as public equity venture partner. Dr. Glassman is a board-certified hematologist oncologist who remains on the faculty as a clinical assistant professor of medicine at Weill Cornell in New York. With this, I now hand over to Arun Sharma for discussing financials. Thank you, Syed, for the brief. A very good evening, and thank everyone for taking out time and joining us on our quarterly earnings conference call. I would like to highlight the company's financial performance during the quarter ended 31st December 2020. Revenue from operations during the quarter was at INR 2,664 crores as compared with INR 2,315 crores in Q3 last year. Pharma revenue was at INR 1,692 crores versus INR 1,450 crores Q3 2020. While LSI reported revenue at INR 892 crores as compared with INR 797 crore during Q3 2020. Contract research and development services revenue was higher by 17% year-on-year to INR 79 crores. Reported EBITDA during the quarter was at INR 653 crores as compared with INR 513 crores in Q3 FY 2020, with the margin at 24.5% versus 22.2% in Q3 FY 2020. Pharma EBITDA margin grew 46% quarter-on-quarter, and LSI EBITDA grew 12% quarter-on-quarter. Depreciation and amortization expense during the quarter was at INR 127 crores versus INR 113 crores in Q3 2020. The finance cost during the quarter was at INR 59 crores versus INR 72 crores in Q3 2020, a reduction of 17% year-on-year. Average blended interest rate for Q3 FY 2021 was at 5.63%, comprising of INR loans at 7.27% and USD loans at 5.07%. Reported tax during the quarter was at INR 310 crores, up by 53% year-on-year and 39% quarter-on-quarter. EPS for Q3 FY 2021 is INR 19.54 per share, versus INR 12.84 per share in Q3 FY 2020. The company's net debt on a constant currency basis stood at INR 2,686 crores, a reduction of INR 570 crore as compared to March 31st, 2020. We continue to have a strong cash position and expect to generate healthy operating cash flow during this year to further reduce our net debt levels. As of Q3 FY 2021, the estimated net debt of Jubilant Pharmova is INR 3,044 crores and Jubilant Ingrevia is at INR 529 crores. We wish to inform you that Jubilant Pharma Limited, as on January 29th, 2021, redeemed the principal amount of $100 million on pro-rata basis out of $300 million senior notes due 2021. We have also announced redemption of another $100 million on March 5th, 2021, whereupon the notes will be paid in full and no amount will be outstanding under the notes whatsoever. Out of the total redemption of $200 million between January and March 2021, we have refinanced $150 million and the remaining $50 million is being paid out of company's cash balance. Capital expenditure, including R&D capitalization, was at INR 104 crores for Q3 FY 2021 and INR 285 crores for nine months FY 2021. For FY 2021, we plan to spend around INR 400 crores in all. Before I conclude, I would like to provide an update on our reorganization proposal. We received the final NCLT order approving the composite scheme of arrangements. With effect from 1st February 2021, LSI business demerges from Jubilant Life Sciences Limited, which is now renamed as Jubilant Pharmova Limited, and LSI business merges into Jubilant Ingrevia Limited. We have already announced 5th February 2021 as the record date for shareholders who will be entitled for allotment of one equity share of Jubilant Ingrevia Limited for one equity share held in Jubilant Pharmova erstwhile Jubilant Life Sciences Limited. With this, I conclude my opening remarks. We will now be happy to address any questions that you may have. Thank you so much. Thank you very much. Ladies and gentlemen, we will now begin the question answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handset 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 Rakesh Jhunjhunwala from Rare Enterprises. Please go ahead. Sir, congratulations on a very fine performance. I'd like to ask you, why is your rate of tax so high at 34%? Sir, rate of tax here maximum 25%, here 20% and above, I don't understand this. Hello? Yeah. We are not able to hear you fully. Mr. Bhartia, why is the rate of tax 34%? I thought it should be much lower. No, we are in the 32% bracket, so with the deferred tax, the rate of applicable tax is this. No, no. The other scheme in India, the rate of tax is not more than 25.14%. Hello? Mr. Jhunjhunwala, this is Arun Sharma. Last year we had a lower rate of tax because of new regime we opted for, this year it's a normal tax, so it is little higher this year. We'll look into it. The rate of tax in India is 25%, sir. The corporate rate of tax in India is 25%. For us, we have not opted for 25%. Okay. Why don't you opt 25%? Your rate should come down. We have a carry forward deferred tax available with us. That is why we don't want to opt at this stage. Out of that, how much is used? The real tax outflow is less. Sir, how much is the actual outflow? Arun, what is the actual outflow? Sir, outflow will be around 24%. How much is the deferred tax which you are carrying forward now after this quarter? Sir, to get figures, we can get back to you maybe after this call. Okay. Anyway, congrats on a fine performance. Thank you. How is the specialty business, the LSI business and Radiopharma doing in the current quarter? Sir, this is Pramod here. Yeah. On specialty business in Radiopharma, in U.S., as you are aware that the number of cases continue to increase after having gone down in Q2. The business still continues to operate at about close to 90% of the pre-COVID levels, plus some additional impact. It has been 90% now. How How much was it in the third quarter? In the third quarter also, it's about 90% of the pre-COVID levels. Plus, there is some additional impact on one specific product, DTPA, which is used for lung perfusion imaging, where a patient has to breathe in and breathe out. That product is impacted a bit more. You expect recovery once the COVID recovery is there in America? Yes. When the COVID recovery happens and hospitals start giving priority to the diagnostic procedures also, we expect business to come back to normal. Which will be next year? Rajesh, with the vaccinations, we hope that in the next three to four months, three months' time, the COVID should come down. Hospitalization rates should come down if the vaccination rate increases in the U.S. Right. What the CDMO business is now at full capacity, or there is still scope to increase it? As of now, because of this extra demand for the vaccines, the plant is running at full capacity. Right. You are debottlenecking and increasing the capacity? We had done those initiatives, as I mentioned in the call, by running all the lines on 24 by seven and installing additional lines, by which we had debottlenecked capacity more than 30%. That's coming very useful and handy as of now, and it's running on full load. When do you expect the listing of the LSI business? I think by 19th March. 18th, 19th March. It will be separated within this financial? Yeah. Sure. From next quarter, you will be giving different results. Yes. Both the companies report differently. That's right. Yes. You've retained the same board of directors in both the companies? No, there is changes in the directorship. We'll keep you informed. Thank you, sir, and congrats on a very fine performance. Thank you, Rakesh. Thank you. All the best. Thank you. Thank you. The next question is from the line of Alankar Garude from Macquarie. Please go ahead. Hi, sir. Congrats on completion of the demerger and a strong performance. Firstly, can you give some broad indication as far as the revenue contribution from these three COVID-19 products, or the two COVID-19 products, and the vaccine is concerned? Any color on the margins of this portfolio? As we mentioned that we increased capacity by about 30%, and as of now, the capacity is running on full load. It will not be appropriate to talk about the product-specific revenue because of confidentiality with the customers. That additional capacity is leading to the good growth in the CDMO business segment. Any comment on the margins profile, sir? Yeah. The margins are also higher. We had mentioned earlier that this vaccine business is at a higher margin than the normal margin. The contracts have been worded with some additional impact in the revenue with the capacity charge, et cetera. The margins are better. Understood. My second question, sir, is if you look at our CapEx, it's actually trending lower than what we had guided earlier. We were at INR 500 crore of guidance earlier for this fiscal. Now, I think you said INR 400 crore in your opening remarks. This is significantly lower than, say, what it was a couple of years back, more than INR 700 crore. Does this mean, and we operating at full utilization, full capacities for our CDMO facility, better demand for generics as well as API? Should we expect some increase or some meaningful increase in our CapEx intensity over the next couple of years? You are right. You are right on this. What we did, we conserved on the CapEx because of the pandemic, uncertainty of the businesses. Now going forward, we are taking steps to increase capacity in our CMO business and also in other businesses. Sir, any ballpark number you can share for FY 2022? What is the CapEx you're looking at? I think by March end, we'll be able to share some exact figures. We are continuously evaluating it now. Fair enough. Sir, my final question is on MAA. What is the latest there as far as the pricing after the new competitor has come in, as well as the market share? Any color on that, and how do you see the molecule progressing for us going forward? I presume you are asking for MAA. Yes. Yeah. We had covered this in the last call, and we mentioned that the price drop had not been much. There had been marginal price drop. The market share also, what we gave is much lower than our earlier expectations. That is not of material. Okay. You expect more or less that to continue going forward? Yes, because this business runs on the multiyear contracts. Those contracts are already in place. Fair enough, sir. Thank you, and all the best. Thank you. Thank you. The next question is from the line of Rahul from Abakkus. Please go ahead. Hi, sir. Congratulations for the good set of numbers. Pramod, sir, this question is specifically just to understand, ex of the COVID portfolio, what will be the key triggers for our EBITDA to move from the current rate of INR 2,000 crores to INR 2,500 or possibly INR 3,000 crores? Can you please repeat the question? I couldn't follow it. Sir, of our COVID portfolio, if we keep our COVID portfolio aside, what will be the key triggers or the catalyst which will help to move our pharma EBITDA of INR 2,000 crores to INR 2,500 crores? Without going into specifics into the numbers, it's not only CMO. Even our other businesses have also done very well, including API and the generics business. In both the businesses, we have seen higher volume growth, and we have seen better pricing. In CMO business, even other than the COVID products, the other products also continue to see higher demand. It's not that after the COVID product, again, the capacity utilization will come down. We expect good demand to prevail and the plant to run on the capacities. With regard to specifically pharma business, as earlier mentioned by Mr. Bhartia, once this vaccination in the U.S. picks up and the COVID cases continue to go down, we expect all these diagnostic procedures to come back to the normal, to the pre-COVID level, both in Radiopharma as well as into allergy. Right. Fair point. And, COVID portfolio also is not going to go away. The vaccines will be required every year. It only is going to go up going forward. Sure. Our contracts will be like annual contracts for these vaccines, or how will it work? As you know, there has been a lot of uncertainties related to COVID when these contracts were done. They have been done as of now for 12 months to two years. The COVID situation will continue to evolve. If there's going to be demand of the extra shots every one year, every two years, and the demand will be there in the market, then we are confident that these contracts will be rolled over. Okay. Sir, a quick question. In a presentation, we have given a INR 4 crores revenue from a new product, from a novel product. Can you throw some light there, sir? What is the potential of the product? What is the total market size? Arun, which is it? Which business? Is it [debt]? Novel product, yeah. Novel product portfolio. Focus on the novelty, novel product. Those are not revenues. Those are just cost adjustments. Oh, okay. There's no revenue there now. Okay. From our Jubilant Therapeutics, there are no molecules that are commercialized as of yet? No. Okay. Fair point, sir. That's it from my end, sir. I'll come back in the queue. Thank you so much, sir. Thank you. The next question is from the line of Rakesh Jhunjhunwala from Rare Enterprises. Please go ahead. I have two questions. How significant is the launch of RUBY-FILL in America, Europe, and every other API pharma products out there? Europe must be a large market. Sir, unlike U.S., Europe market is not fully developed yet. You are right, that there's a high potential, and that's why from the last two years, we have been making the efforts to get the RUBY-FILL registered over there in Europe. Now, that has been done, and we are focusing on developing the Europe market also as strongly as U.S. What is the net debt of the pharma business on January 31st? Sir, we have declared that debt as of December 2024, I think we should be in the same range as of January end. The audit is going on, and I think in the March quarter, we'll be able to formally tell you what is the debt. It should be in the same range only. What is it, December 31st? Around INR 3,000 crores, sir. Around 3,000 pharma business and of the LSI? LSI, as of now, it is INR 529 crores, and we expect as of March end, because LSI business is doing well to generate cash flows, and we should end at around INR 500 crores, sir. Okay. INR 2,500 crores is the debt as of 31st December. The net debt. Yeah. Net debt, yes. Thank you, sir. Thank you. One more question. How significant can be the growth in this contract research business in hand? Hello. Yeah. No, we did INR 80 crores turnover in that business quarter, no? Yeah. Yes, INR 80 crores. Yeah, INR 79 crores. Wasn't the year continuous? Yes. Contract research growth is continuing, and our current capacity utilization is more than 90%, 92%. That's why we are also planning to add capacity because we have currently more business than what we can deliver. Our new capacity, which is coming up and running sometime in Q1 next year, will give us opportunity to take more business. Most of the same. Sir, how big is the expansion? On chemistry side, we are increasing to almost 100%. Double the capacity today. It can be a big business, INR 80 crore to double the capacity. Yeah. That can be very good. Exactly. Margins are very good. Yes. Is your business similar to of Biocon? This business is the integrated drug discovery business. This is definitely much different than the normal contract research business. This is valuable business, and most of the contract goes for longer term. This can be a significant contributor. Thank you. That's right. Thank you. [inaudible] Thank you. The next question is from the line of Mr. Barkha from Motilal Oswal. Please go ahead. Hello, sir. Thanks for the opportunity. Regarding this INR 500 crore worth orders, which you mentioned in the CMO business, I just wanted to confirm how much of this has already been realized in this quarter? Since the time we entered into the contracts up to the last quarter, we have realized about half of that. INR 250 crore roughly? Yeah. I said that we still see upward potential into those estimates, and we'll continue to update you as we get a better visibility. Okay. Thank you. Bye. Thank you. The next question is from the line of Sarvesh Gupta from Maximal Capital. Please go ahead. Thank you, sir. My questions have been mostly answered. Just one question on the proprietary novel drugs business. There are many companies which do such drug development, and that ends up being a very high gestation period as well as a highly cash negative sort of a business. What's the thinking around it? What kind of cash burn do we envisage in the coming years in this business? Do we have any immediate triggers to realize the potential of any of these things that we are developing? Yeah. This is Hari Bhartia. To your question, our business model in this is not to take it to commercial. That is why when Syed explained that we are at an early stage of discovery, and we are presently taking it to phase I, that is to the clinic. Normally, we start looking at opportunities of out licensing it end of phase I or beginning of phase II. That's the stage we look at. As you also know that we also have the opportunity when we have a portfolio of products to also raise funds at the Jubilant Therapeutics level, as biotechs have done on early-stage compounds. Normally the late-stage work, it will be licensed to mostly large pharmaceutical companies. Understood. We would not have any significant cash burn in this business because we will try to license it out. That's right. We are not going to the market. Okay. We are not going to commercialize this product. It takes much more time, and that's not our objective. What we are good at is early-stage science and translating it to the clinic stage. That's where the major value creation happens, and we would look at out licensing it. The idea is to build a portfolio. There will be successes and there will be failures. Understood, sir. On the generic side, we have seen a fairly strong sort of traction in this quarter as well as the nine months. If you can give some commentary, is there some one-offs in this particular growth? It's Pramod here. Not a specific one-off except that we had launched the remdesivir. That becomes an added product in the portfolio, which brought the revenue from India and also the other licensed countries. That had some impact. Other than that, our normal other products also had a higher demand during this quarter. Some of them also had quite good margins. We see that the demand on those products continue to remain stable. Understood. Sir, our Life Sciences chemicals business has seen a lot of volatility in the margin profile. Given where the product mix stands right now and the opportunities that lay ahead of us, where should we see the sort of a cross-cycle steady state EBITDA margin number for that particular business? If you can see the Life Science Ingredients performance from last three, four quarters, it's more or less static or growing. The volatility, as you see in Life Science Ingredients business, comes mostly from the acetic acid prices and some of the commodity prices. More or less now all these commodities are at a very high level. You will see that going forward, this volatility will be reduced, and our performance will be more or less consistent. Instead of looking at margin in the Life Science business, you should look at the overall EBITDA growing. EBITDA value. Yeah. EBITDA value. That's very important because of Life Science chemical business within the business, where margin keeps on varying, but the total EBITDA growth is there. Okay. In a different way, what kind of incremental ROICs or the IRRs that you are looking at when you are spending cash on this particular business to expand it? Our ROI has increased significantly from last year. This is really improving because if you see, we have not spent a lot of money in last one year, and our EBITDA has been growing. Our ROI is trending in a very good level as it is close to around 20%. That should be the steady state sort of a number for 20% ROIC on this particular business? I would say more or less same. It will depend on the future investment on the growth, but I think it will be on the same range of 18%-20%, or it will be better depending on the product portfolio and business prices. Understood, sir. Thanks a lot and all the best for the coming quarters. Thank you. The next question is from the line of Pratik Kothari from Unique AMC. Please go ahead. Sir, thank you for the opportunity and congratulations on good set of numbers despite subdued contribution from Specialty Pharma. A couple of questions. First, if you can bifurcate the depreciation numbers between LSI and Pharma. If you see overall depreciation, Pharma depreciation constitutes 70%, and LSI depreciation constitutes 24%. 17% and 24%. Yeah. 2% goes to the GBS business. That is the breakup of depreciation amongst three businesses. Okay, fair enough, sir. On the Jubilant Therapeutics side, what would be our R&D spend annually? How much do we spend there currently? On the therapeutics side, in FY 2021, as we have given the number, it's in the INR 9 million range. Now that the programs are going forward and moving to clinic, assuming success in some of these milestones, the expenses are expected to be higher than FY 2021. Okay, sure. Sir, my last question is, given the asset base that you have built, can you just briefly talk about what kind of revenue potential that we have? On the drug discovery side, we did mention that we are doubling the capacity. On the CDMO Pharma side, we talked about increasing capacity by 30%, but it's completely utilized now. Specialty Pharma, I believe, will come back in a few quarters down the line. Given the asset base, before we start our major CapEx from next year onwards, what kind of growth can we see or what kind of potential do we have? As we said, we are looking into expanding our CMO business, both at Montreal and in Spokane, the two sites. In both the sites, we are finalizing our plans to expand that CMO business. That is a very good traction in future. At the same time, we are also looking at debottlenecking some of the capacities at the different plants. We have expanded Roorkee dosage formulation plant a year ago. That has a capacity to fill up the additional demand. As of now, we are also expanding the capacity, doing the debottlenecking into the Maryland plant, into Salisbury plant for the dosage formulation. That will start generating additional volumes from the mid of next year, next financial year. Okay. On the LSI side? Sorry, can I come back with the question, please? On LSI. On the LSI side, any capacity debottlenecking or expansion? Yeah. Some of the product debottlenecking is happening. That will give us additional revenue from the existing assets. Also we have expansion plans for future. Okay. Which we'll be declaring in the next protocol, right? Yes, please. Sure. Thank you, sir, and all the best. Thank you. Thank you. Reminder to the participants if you wish to ask a question, please press star then one on your touch tone telephone. The next question is from the line of Vishal Manchanda from Nirmal Bang. Please go ahead. Thanks for the opportunity. I joined the call a bit late, so I'm not sure whether you have commented on RUBY-FILL. Wanted to understand if there is an update there in terms of market share. How are we progressing? RUBY-FILL, we mentioned that after we got the approval in Europe, we have launched our first commercial site in Europe in last quarter. We will be investing our time and effort to develop the Europe market because there's quite a lot of potential. We'll be doing that. As regard to RUBY-FILL into U.S., we continue to do installations at the new site. Yes, not as per our earlier estimations, because due to COVID, there are the restrictions in the hospitals and the imaging centers for the travel related issue and doing these additional installations. Though we continue to generate a very high number of inquiries and the customer's interest is there. We have quite a good funnel, where the launches or the installation should happen as soon as the COVID situation improves. Could you give a sense on what will be our market share now? Say low teens or some color there. Market share, it continues to increase. What I can share with you is that in spite of the COVID issues, we will be doing the additional installations more or less same as we did last year. What I was hinting earlier is that in the past, we have been growing two to three times. Instead of two to three times, it's only growing one time. That is the impact of COVID in this year. We continue to increase our market share rapidly. For now, as I understand, there were long duration contracts that the competitor has. This is no longer a major hurdle for you to ramp up your RUBY-FILL market share. It depends from customer to customer, but quite a lot of those contracts have expired, and that's how I mentioned that we have a very healthy funnel of the additional inquiries or the new business development opportunities. Some customers also earlier had the hesitation because of the patent, the litigation which was going on into the ITC court, on which the decision has already come very much favorable to Jubilant. Though the Bracco has made an appeal, but we have a very strong case, and the customers also understand that. That issue is more or less behind us. Sir, on Exametazime, the other Radiopharma product you had launched sometime back, maybe close to when you launched RUBY-FILL, is that a materially important product for you now, or that hasn't ramped up? For that product also, we were growing the market share. As of now, during this COVID, when as such the demand is low, then the customers also do not have that much of the incentive to make a switch. Okay. It's not of that much material, but the product is performing as per our expectation. Okay. Finally, on the allergy immunotherapy side, is that kind of market saturated now and difficult to build growth on the current base? No, the market is not at all saturated. In fact, that's the market which still has huge potential. That's what we are exploring. We are looking at. Within U.S., there's a huge potential to share with you, like the venom, where we are the sole supplier in the market. The number of the venom stings what you have and the number of patients who are on this, the venom immunotherapy. The market potential is almost four times of the current number of customer base we have. It has huge potential outside U.S. Far in the past, we were limited with the capacity. We have done the investments. We had the other line which was available, for which we had taken the U.S. FDA approvals. Now those capacity issues have been resolved, and we are in the process of developing the market internationally into many other geographies other than the U.S. I'm sorry, sir. Go ahead, please. Yeah. Even in non-venom extracts also, there's quite a good potential for the growth within U.S., but also huge potential outside U.S., which we are addressing now. Okay. Sir, on CDMO side, how long will it take? Order book you have in hand on vaccines and other, can existing capacities help you serve that demand, or you would need to implement new capacities before you can meet the demand? We are not taking additional orders which we cannot serve. That's why I said that plant is almost on capacity. In this business, to put up a capacity and then do the validation, take the customer's approval and FDA approval takes a little time. The period could be somewhere around three years. How much time? Three years. Three years. Sir, the run rate that you have achieved in this quarter on the CDMO side, will that peak out at current levels, or is there a scope for that to go up in the near term? Yes. You are absolutely right, that's what I mentioned in the call that the vaccine contracts, what we have done are at much higher margins than the other products, what we had in the portfolio earlier. As the market continues to remain short on the capacity and when our other contracts comes up for the renewal, we have opportunity to roll over them at a much higher margins. The margins in this business have the potential to continue to improve. Okay. Just one more on the LSI side, on vitamin D3. There has been an approval for your pharma grade vitamin D3. Has that pharma grade component ramped up in the vitamin D3 sales, or it is entirely animal feed as of now? In vitamin, we have pharma-grade we are still working on. That should be ready sometime in next four to six months. Yes, we have got the new business from good business from food segment. We have got good business from cosmetic segment. Our expanding the volume of vitamin to other segment other than feed has been having very good traction, which is going to continue in future also. In addition to that, now we are working to introduce our vitamin into pharma business in next four to six months' time. Okay. Currently, the feed business would be, say, 80, 90% of the revenues? Yeah, it should be close to 80% or little less than 80%. Okay, sir. Thanks. That's all from my side. Thank you. The next question is from the line of Rahul from Abakkus. Please go ahead. Mr. Rahul from Abakkus, you may please go ahead with your question. Yeah. Hi, sir. Sir, on the LSI segment, for the past 10 years, our EBITDA has been moving around INR 400 crore-INR 600 crore. It's been oscillating in that range. Sir, just trying to understand what would be the key catalyst to move it from INR 600 crore to INR 1,000 crore kind of EBITDA over the next two, three years. If you are talking about last 10 years, probably we have increased from a level of, let's say, INR 300 crores to today in the range of about INR 550 crores or so. Right. It is not stable, it is growing. The major growth has come from our new product, which we are now continuing further, and the utilization of capacity. That's why if you see last 10 years, there has been growth in EBITDA, and we will now continue to see the growth going forward as well. Sure. What would be the key catalyst for order? Like capacity increase or number of products coming up, or what would be the key catalyst there? For last two, three years, we have been improving our product mix. That is why you see the EBITDA value has been growing. We have been focusing on improving our product mix to improve EBITDA. Going forward, some of the debottlenecking, which is on way, will give us the additional EBITDA. Also the expansion of capacity of those products where the demand is growing, that will also give us additional EBITDA. Sure. sir, in terms of percentage capacity, what is the total percentage capacity going to increase over the next one to two years? Yeah. As Mr. Bhartia mentioned, we are still evaluating on our expansion plan, and sometime by end of March, probably we'll be ready to share something in specific. Sure. Fair point, sir. Thank you. Thank you. The next question is from the line of Alankar Garude from Macquarie. Please go ahead. Sir, can you update us on the progress of the ongoing improvements at Triad in terms of increasing the network, winning more contracts, adding headcount or anything on the cost efficiency front? Largely on the growth front, if you could highlight on that. On the growth side, the expansions during the time of the COVID, as Mr. Bhartia mentioned earlier, we had curtailed the CapEx. We wanted to wait and see how this COVID situation evolves. As of now, that business remains impacted due to COVID, and I mentioned is operating at about 90% of the pre-COVID level. Since the vaccines are getting rolled out and we are seeing that probably in a quarter or two, the COVID should settle down. Now we are again in the process of evaluating those expansions, which we had kind of put on hold, and we plan to roll them out. In terms of winning new contracts or regaining some of the lost contracts, which we had, say, three, four years back, what is the progress on that? You might have hit a speed bump because of COVID, but maybe once things normalize, are we on track on winning those contracts and executing them? We have a lot of ongoing discussions with the customers, but especially during the time of the COVID, the customers are also not interested to make a switch. It takes little bit efforts for them to make changes when they switch from one source to other source. We have a healthy funnel over there. The customers are also waiting for this COVID situation to get settled down. In terms of the top line, I'll say that we are more or less stable as of now. Understood, sir. My other question was on the generics business. We have 36 pending ANDAs, and I assume all of these are from Roorkee. On the other hand, we are also doing a capacity expansion for Salisbury. Have we site transferred any of these ANDAs from Roorkee to Salisbury, at least the important ones? We are evaluating that option. You are very right in doing that assumption, and that's what we are also evaluating. As you may know, that if the ANDA is not approved and in between it you do the site transfer, then it requires additional investment for the BA/BE studies, et cetera. That strategy will depend upon product to product. Some of the products which requires the immediate priority will be a good candidate for that. Having said that, we don't expect the Roorkee warning letter situation to last so long. As we mentioned that we have done all the remediation efforts, and we are just waiting for U.S. FDA inspection to happen. As of now, those inspectors are not traveling because of COVID. Sometime soon, they will either start traveling or they will adopt the alternate mechanisms for the inspections, whether doing it through documents or virtual. We expect the Roorkee site access to those warning letter soon. Understood. That situation will not be there. We may still be doing that for some of the products to have two sites instead of having only one site. Where there is an economic advantage in producing in each other's site, then we decide. It's basically because of economic advantage. Understood, sir. In terms of new filings, are you looking to do incremental filings more from Salisbury from a long-term perspective? Any thoughts on that? Roorkee will continue to be the most important facility for us going forward. We decide on the basis of, as I said, economic advantage. Wherever there is the best economic advantage, looking at the transportation cost, looking at the conversion cost, et cetera, we decide on the basis of that. We don't decide on the basis that we'll not file from Roorkee, we'll file from Batista, or we file from Roorkee. It is not like this. We decide on what is the best economics for that product, and which gives the best value. Okay, sir. One final question on the API business. We continue to see a strong order book. Any thoughts, sir, as far as any expansion for API specifically? In API plant as such, we have lot of scope for doing the debottlenecking and increasing the capacity. We have already evaluated various schemes through which we are confident that within the same plant we can debottleneck it to more than 35%. Other than that, we are also evaluating option for doing expansions of the additional plant, either over there or at some other site. That's under evaluation currently. This 35%, sir, is from current levels? When do you expect that to be completed? We have already made the plan depending upon the various product streams and their demand, what we see in the market, and we hope to implement that in another one or two years' time frame. Understood, sir. That's all from my side. Thanks, and all the best. Thank you. Thank you. Well, ladies and gentlemen, that was the last question for today. I would now like to hand the conference back to the management for their closing comments. Thank you everybody for joining this call. In case you have any further clarifications, Hemant is available for you as a point of contact. He shall be happy to answer all the questions going forward. Thank you.