Ladies and gentlemen, good day, and welcome to the Q1 FY 2022 earnings conference call of Jubilant Pharmova Limited. 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 touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Pavleen Singh Taneja, Manager, Investor Relations. Thank you, and over to you. Good evening, everyone. Thank you for being with us on our Q1 FY22 earnings conference call. I would like to remind you that some of the statements made on the call today could be forward-looking in nature. 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 S. Bhartia, Chairman, Mr. Hari S. Bhartia, Co-Chairman and Managing Director, Mr. Arvind Chokhany, Group CFO, Mr. Pramod Yadav, CEO, Jubilant Pharma, Mr. Syed Kazmi, CEO, Jubilant Therapeutics, and Mr. Arun Sharma, Chief Financial Officer, Jubilant Pharmova. I now invite Mr. Shyam S. Bhartia to please share his comments. Thank you. Good evening, everyone. I hope all are in good health and keeping safe. Before we discuss the company's performance during the quarter, I have an important announcement to make. Board of Directors of Jubilant Pharmova Limited at its meeting held on July 23rd, 2021, has approved the demerger of the API undertaking of the Jubilant Generics Limited and vesting the same with Jubilant Pharmova on a going concern basis to be implemented through a scheme of arrangement between JGL and Jubilant Pharmova and their respective shareholders and creditors under Sections 230- 232 and other applicable provisions of the Companies Act 2013. The business of reorganization is aimed at creation of a small molecule discovery and chemistry-focused vertical present across value chain of CRO and CDMO of innovative and generic APIs. It will strengthen and sustain long-term growth, profitability, market share, customer service, risk management, as it requires focused management attention, different skill sets, and resources. This will ensure that synergies between CRO and CDMO businesses are realized more effectively under a holding public subsidiary company structure as compared to fellow subsidiary structure. This organization would also help in supporting our customers for their needs from early stage of research to commission of active ingredient and will provide competitive edge to this business. Coming to the company's performance in Q1 FY 2022. Though the Radiopharma continues to be impacted due to COVID in Q1, we saw sequential improvement in specialty pharma segment with gradual recovery across radiopharmaceuticals, Radiopharmacy, and allergy. In radiopharmaceuticals, we have enhanced efforts to promote existing products as well as expand our product pipeline with strategic partnership. With a gradual recovery in nuclear medicine procedures, the Radiopharmacy business has come close to pre-COVID levels. Turnaround plan is on track. The CMO business continued to benefit from COVID-related deals. Our Roorkee facility was placed under import alert by U.S. FDA while exempting some products subject to certain conditions. For rest of the products, revenue impact for the company is less than 3% of the total revenues. The company will engage with the agency to resolve the import alert at the earliest and ensure CGMP compliance. Contract research and development service business witnessed strong year-on-year growth in revenues led by healthy demand from customers. We have doubled our chemistry research capacity. The facility is operational now. Despite COVID-19 related lockdowns, we have been able to ensure continuity in most of our manufacturing operations across all business segments, while at the same time ensuring safety of our employees. 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 continue to serve our global customers. With this, I hand over to Pramod Yadav to discuss the pharma business. Thank you, Mr. Bhartia. A very good evening to all of you. Pharmaceutical revenue was at INR 1,541 crore versus INR 1,096 crore in Q1 FY 2021. In Radiopharma business, due to improving COVID-19 situation in the U.S., there is gradual improvement barring lung scans which are trailing the recovery curve. The RUBY-FILL installs are picking up, and we expect to gain momentum in the U.S. if COVID-19 situation remains stable. In Radiopharma, we continue to maintain majority market share and have long-term contracts in place. We are building a long-term pipeline of radiopharmaceuticals, including generics as well as proprietary products being used as the diagnostic therapeutics, theranostics and the devices via in-house R&D as well as strategic partnerships with key nuclear medicine companies. We are executing a detailed turnaround plan for Radiopharmacies to grow top line strongly with new customer wins, expand network to service newer geographies, and enhance cost and procurement efficiencies. The allergy immunotherapy volumes have normalized to pre-COVID levels in Q1 FY 2022 as COVID-related restrictions ease. The CMO business revenue grew year-over-year based on strong demand from customers as well as COVID-related deals. The INR 200 crore COVID-related revenue for FY 2022 indicated in the previous quarter has been realized in Q1, and we expect to realize an additional, about INR 100 crore in the rest of FY 2022. We have seen pricing pressure in API as well as the generic business, especially on sartans, however, the generic business overall grew year-over-year as well as quarter-on-quarter on back of higher volumes including remdesivir sales. Our R&D spend is primarily directed towards development of new products in radiopharmaceuticals, APIs, generics and allergies. The radiopharmaceutical spend is the highest, given the complexity of the business and the fact that some of the products are innovative in nature. The EBITDA for quarter was at INR 360 crore, INR 362 crore as compared to INR 179 crore in Q1 FY 2021. The Roorkee formulation facility was placed under import alert by U.S. FDA. The agency has exempted a few products from the import alert, namely the meclizine, olanzapine ODT, risperidone ODT, spironolactone and valsartan. The conditions for exemptions include testing by an independent third party, the certification by an independent third-party auditor, and confirmation that no batch or lot offered was involved in an incident associated with an out-of-specification results. For rest of the product revenue impact for the company is less than 3% of total revenue. We are engaging with the agency and are taking help of consultants and hope to resolve the issue soon. The Nanjangud OAI status remains as it is. We have completed remediation activities and await U.S. FDA inspection. With this, I hand over to Arvind to provide insight into contract research and development services business. Thank you, Pramod. Our contract research and development services business under Jubilant Biosys brand continues to deliver a very healthy performance during Q1. This was driven by strong demand from biotech companies, integrated discovery as well as functional services such as chemistry, DMPK, and discovery biology. The business has a healthy pipeline of new contracts and customer acquisitions for FY 2022. Q1 FY 2022 revenue grew 55% year-on-year, and EBITDA grew 90% year-on-year. As we informed in the previous quarter, the business has committed investment to double the chemistry research capacity in Greater Noida and the facility is operational now. With this, I now hand over to Syed to discover the proprietary novel drugs pipeline. Over to you, Syed. Thank you, Arvind. Good evening, everyone. In our proprietary novel drug business, we are developing a pipeline of potential first-in-class and best-in-class agents to deliver precision medicines focusing on addressing unmet medical needs in the area of oncology and autoimmune disorders. We are also leveraging our industry-validated drug discovery platform to identify novel promising agents and move them from discovery to development on an accelerated timeline. Our first-in-class LSD1/HDAC6 dual inhibitor addresses multi-billion dollar market segments in both hematological malignancies and solid tumors, and is undergoing investigational new drug, IND, studies with a goal to file IND and initiate first- in- human clinical studies in early 2022. Two more programs are following this lead. A first-in-class PAD4 inhibitor targeting autoimmune disorders such as rheumatoid arthritis, sepsis, as well as metastatic cancer, and a differentiated PRMT5 inhibitor with potential best-in-class profile, which uniquely shows both blood and brain exposure, and therefore can address brain tumors like glioblastoma as well as brain metastasis. IND filings for these two programs are planned over the next 12- 15 months. The U.S. biotech market is witnessing very strong investor interest in precision therapeutics in oncology and autoimmune diseases based on the recent equity raises at attractive valuations. In our proprietary novel drug business, we are developing very high potential and first-in-class assets in these areas. Four of our assets under development are at advanced pre-clinical stage and will transition to clinics starting early next year. The company is working towards creating shareholder value in this business through a private or public equity raise during the coming 18- 24 months. With this, I now hand over to Arun Sharma to discuss the financials. Thank you, Syed. A very good evening. I 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 for the quarter ended June 30th, 2021. As the LSI business stands demerged from Jubilant Pharmova effective February 1st, 2021, I would cover performance of our continuing business, which includes pharmaceuticals, contract research and development services, and proprietary novel drugs. Revenue from operations during the quarter was at INR 1,635 crores as compared with INR 1,156 crores in Q1 last year. Pharma revenue was at INR 1,541 crores versus INR 1,096 crores in Q1 FY 2021. Contract research business reported revenues at INR 88 crores as compared with INR 57 crores during Q1 FY 2021. The EBITDA reported during the quarter was at INR 379 crores as compared to INR 183 crores in Q1 FY 2021, with margin at 23.2% versus 15.8% in Q1 FY 2021. Depreciation and amortization expense during the quarter was at INR 88 crores versus INR 82 crores in Q1 FY21. Finance cost during the quarter was at INR 35 crores with INR 48 crores in Q1 FY21, a reduction of 28% YoY. Average blended interest rate for the quarter was at 4.64%. Reported PAT during the quarter was at INR 160 crores as compared with INR 35 crores in Q1 last year. EPS was at INR 10.1 per share versus INR 2.2 per share in Q1 last year. We continue to focus on deleveraging, and I'm glad to mention that during the quarter, the company reduced its net debt on a constant currency basis by INR 277 crores to INR 1,651 crores. Capital expenditure, excluding R&D capitalization, was at INR 106 crores for the quarter. For FY22, we plan to spend around INR 700-800 crores. With this, I would like to conclude our opening remarks. We will now be happy to address any questions that you may have. 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 the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Anyone who would like to ask a question, you may press star and one at this time. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Anyone who would like to ask a question, you may press star and one at this time. The first question is from the line of Alankar Garude from Macquarie. Please go ahead. Hi. Good evening, everyone. Sir, can you update us on the key issues cited by FDA which led to the import alert? Yeah. Hello, Alankar. This is Pramod. The key issue cited by FDA in the 483 observations were mainly related to either cleaning protocols Some of the validations for our data, the way they are backed up in the server, et cetera. While raising the import alert, the FDA doesn't cite the issues separately. My point there is, if I look at the issue with respect to cleaning, so that was also cited in the advisory which we received in March 2019. We had more than two years to rectify the issue. Why do you think we got the import alert, and why did these issues continue to persist even after two years? We had taken the help of the consultants, and we had resolved the issues to the best of our knowledge. However, when the inspection happened, there were some issues related to the cleaning, which was not part of the process. Where actually material was not coming in the direct contact. On that part also, FDA made the observation that these also need to be included in the SOP for the cleaning. Since the issue was related to cleaning, so your observation is right. That this issue also came up earlier, and probably that is the reason that FDA took the decision to raise the official action to import alert. Since the issue is only related to GMP and some of the practices which are to be followed, including the cleaning, et cetera, these are not the issues which are difficult to resolve. We hope that we should be able to resolve these issues very soon. Understood, sir. Basically, there are no data integrity issues. I'll say there is no any data fraud or that kind of issues. Okay. Essentially, do you see a possibility of a systemic risk for any of our other facilities because of the import alert? We don't foresee at this stage. We don't have such kind of observations at the other facilities. There's nothing more to comment on that at this stage. Fair enough, sir. Sir, my second question is, if you look at the restructuring, is it a precursor to a separate listing of the CRAMS and the API business in the future? No. At this point, the idea is to create a business unit which is synergistic both to the CRO, where we provide chemistry service and early-stage CDMO, and combine it with our plans for large-scale CDMO in the API as well as generic API. Presently, the idea is to manage this as a one single business unit so that we can provide end-to-end services to the customer. Understood. One final question from my side. Because I see cash has increased sequentially in this quarter. Would it be fair to say that out of the INR 708 crores CapEx which you outlined for this fiscal, there was not much CapEx in the Q1? I think Arun had mentioned that we spent about INR 106 crore in Q1. Okay. Yeah. Okay. Fair enough, sir. Thanks and all the best. Thank you. The next question is from the line of Rahul Veera from Abakkus. Please go ahead. Hi, sir. Sir, in our drug discovery and solutions business, we have been close to 38% kind of margins. We wanted to understand the sustainability. Also how many research scientists do we have in the team? What will be your number once we increase the capacity out there in the coming year? As you heard that we doubled our chemistry service offering and the start of Greater Noida 1 unit. We do see a good traction in the market. We are hoping by the time we reach end of next year, we should further look at increasing capacity. We have room available in the Greater Noida facility itself. Can quickly take up expansion out of the units if we need more capacity there. As far as other discovery services are concerned, we do want to expand it in Bangalore, and for which the plans are getting finalized. Which both integrated drug discovery as well as other biology-related services. Sure. Sir, my question is, what are the number of scientists do we have right now on payroll? Post the increased capacity, what will be the number of scientists then in the drug discovery business? I don't have the numbers ready in hand, but I'll make sure that it comes to you. Sure. That will be great, sir. Sir, one quick question. Sir, post this reorganization. The two units are going to largely be Radiopharma and Drug Discovery. That is the way to look at it? No, not Radiopharma. Okay. Could you just give some highlight out there, like how will the business structure will look? Yes. Like which will be the two large divisions for us after this restructuring? No. Sorry. What was your question? Sir, post the restructuring, how will our business appear? I mean, which will be the one large division, which will be the second division? Right now, we report as specialty CDMO. That's it. drug discovery. Yeah. Yeah. Essentially, Jubilant Pharmova will be large business, and then CDMO will also be large business, and generic business. The three business sectors will be there. Okay. Jubilant Life Sciences? No. There will be drug discovery and API and innovative and generic APIs. Okay. Fair point, sir. Yeah. Thank you so much, sir. Thank you. The next question is from the line of Ranveer Singh from Sunidhi Securities. Please go ahead. Yeah, thanks for taking my question. Again, on this restructuring, just wanted to get clarity that currently our CDMO business is U.S.-based, right, on Montreal facility. That U.S. business of CDMO and CRO business under Jubilant Biosys and plus API, that will be getting clubbed. No after. No. The CDMO business is a sterile one in U.S. Yes. That will stay as one single business unit, that is a sterile contract manufacturing, that will stay as a separate. Only the chemistry part, which is the API part, will get integrated with the CRO business. Both are in India, as you know. Okay. Only that CRO API which was earlier clubbed under CDMO, that is carved out and that CRO business would be clubbed. That is structure. Yes. The Biosys business and the API business will be managed together. Okay. Fine. Secondly, you mentioned INR 200 crore COVID-related revenue came, which was related to earlier year. That INR 200 crore is part of our pharma business, right? In this quarter. Yes. This INR 200 crore was not revenue of earlier year. I said that in the last call, we mentioned that during FY 2022, we expect about INR 200 crore revenue to be realized. In this call, I mentioned that this entire INR 200 crore has been realized in Q1. However, on top of that, we expect another INR 100 crore plus to be realized during the rest of the FY 2022. Ideally, that should come in Q2 or that will spread across year, rest of the year? Yeah. It's spread across the quarters. Okay. There can be variation quarter-on-quarter. Okay. If I reduce this INR 200 crore, then rest of the business has actually been lagging on quarter-on-quarter basis also and year-on-year there would be some growth. On quarter-on-quarter there has been, even the pharma business you see has declined significantly, right. No, in last year also, there were lot of COVID-related deals we had, and we mentioned that they were close to about INR 535 crore over the three quarters of FY 2021. Okay. The non-COVID related business continues to remain strong, and that business continues to grow as well. In the specialty pharma segment, allergy therapy, you have mentioned the volume has normalized now. Whether we have saw a growth in this quarter in revenue in allergy therapy? Yes. Since the volumes have normalized, which in the previous quarter were close to about 95%. To that extent, there is a volume growth and the revenue growth. Okay. Fine. That's all from my side. Thanks a lot. Thank you. The next question is from the line of Shriram Rathi from ICICI Securities. Please go ahead. Yeah, thanks for the opportunity. Firstly, on the specialty pharma side, the Q2 recovery in Radiopharma, how has that been? I mean, Radiop harmaceuticals particularly, has that business grown on Q2 basis? On quarter- on- quarter- Yeah we have seen that there's a gradual recovery. For most of the products, by the time the quarter ended, especially the month of June, we were back to pre-COVID levels, except the lung scans, which we mentioned are still trailing the recovery curve. And we expect them to also recover soon with the time. We did mention in the previous calls also that we expect for the long distance recovery to be little slower than the normal products. Okay. It is slow, but it is recovering, right? In the coming quarters, we should see continued momentum in terms of sequential recovery of the revenue. Yes. In that business, we should see the sequential improvement. Okay. On the CDMO side, if we look at the base business, actually, during the COVID days, it seems that the revenue is having flat-ish on YoY basis. Last year also in quarter one, the overall revenue was actually down 19%. I just wanted to understand, on the lower base also we are flat-ish, so the base business, do we have the, I think, order book around INR 3,600 crore as discussed last time, but that is not some of visible in the numbers. Am I missing something on that or is it still I don't know from where you are getting this analysis that the revenue is flat-ish. We have the contracts in place where we do the annual price increases. Those annual price increases directly go into the growth of the revenue as well as they go into EBITDA. That business continues to remain strong and is growing. Quarter-on-quarter, there could be some bit of the variation depending upon the customer requirements. Also, since we had a lot of COVID-related deals, and of course, they were having the higher margins and they were getting the priority, so there could have been the variation in some of the customer-specific requirements. Overall that business remains strong and continues to grow. Okay. Sure. On the generics business, in this quarter, did we see any benefit of higher remdesivir supplies or something like that? The revenue seems to be quite strong. Yes. We had this unfortunate wave two of the COVID in India, and that did lead to the additional sales of the remdesivir. Okay. In the coming quarter, that should normalize, I think, looking at the current situation, I think. Yeah, it will depend upon how the COVID situation remains. Now the government has also opened up the exports. During the peak of the time, the exports got stopped. As you see, the COVID globally remains little bit of the erratic. In the many of the countries for which we have the license, the overall number of cases are increasing there. It all will depend upon how this COVID situation continues to evolve. It will be lower than Q1. That you are right. Okay, got it. Just two questions on the financials. The gross margin seems to be significantly higher this quarter at 78%. Is it because of the COVID-related supply? Yes, that did have an impact. Also there was the impact of the remdesivir. Okay. remdesivir would have been higher gross margin product compared to the normal business. Okay. Any specific reason for the higher SG&A expenses this quarter? It looks like around INR 400 crore is there, versus normal range of around INR 300 crore-INR 340 crore in the past. No, there's no specific reason for that. It may have been the normal marketing-related expenses. In the previous quarters, especially in Q1 of the last year when the COVID was there, all the traveling, et cetera, had totally stopped. As the situation improves, some of those expenses start coming back. Plus, we are also spending the additional amount for the growth of the RUBY-FILL, and that impact is also there. Okay. Probably we should model with this current run rate now for the future quarters. Okay, sure. Yeah, I think we can do bit of the detailed analysis and then take that offline. Okay, sure. Thank you so much. Bye. Thank you. The next question is from the line of Pratik Kothari from Unique Asset Management. Please go ahead. Hi, good evening, and thank you for the opportunity, sir. My question is regarding our Roorkee import alert. I believe we were pretty ambitious in terms of the number of new products that we wanted to plan there. We had some big plans out there. If you can just throw some light what gets affected because of that and what those plans were. You are right that since now this import alert is there, and we didn't get the. Till the import alert is lifted, that plan gets postponed. We can assume that at least there could be a delay of about one year because of that. In the meantime, we are also exploring the possibilities that all the important products which are there, if we can file them from the different locations so that we are able to bring the products earlier in the market. We are in the process of doing that evaluation. At the same time, likewise, the products which currently have been restricted for import into U.S., they can also be taken to the other sites and then brought back into the U.S. market. That evaluation is also ongoing in parallel. Okay, fair enough. Sir, on the specialty side, our expectation was that in the H1, in the Q1, Q2, we'll be back to pre-COVID levels, and I believe our pre-COVID levels were anywhere around INR 700 crore-INR 800 crore a quarter, and we have clocked only INR 630 crore right now. One, you did highlight that the radio part on the lung side is an issue. Is there new competition coming in resulting in us reporting lower numbers? Yes, to some extent, competition impact will be there, and this we have been saying that whenever a generic enters in this space, you have to give some market share. A bit of the price correction happens, but not to the extent what you see into oral solids or to the other generics. To that extent, impact will be there. That impact is not as large as the impact we had because of the COVID. The COVID impact was larger than the competition impact. Fair enough. Sir, my last question on the CDMO side, like you mentioned, the four or five deals COVID-related, which we won last year, and we'll be completing that in the next quarter. Post that, will we go back to the numbers that we used, the quarterly numbers that we used to report earlier, or do we have something to fill in those gaps? I'm talking about currently we're doing INR 450-500 crores a quarter. Do we go back to INR 250-300 crores, or do we have something to fill that gap now? One is that the COVID deals are not ending in Q2. They are extending for the rest of the year. When we had been doing the debottlenecking of these capacities, we were doing because we were seeing the additional demand in the market and the customers of our existing products were asking the higher volume. Yeah. Last year and in the current quarter also because of the COVID deals, the rest of the business volumes have been more or less stagnant. As the COVID deals start to wean out, we will have the capacity available to take care for the normal business, which we had been running, and we will have opportunity to grow the volumes there. We are already engaged with the customers on that front. In the CMO, you are aware that all the scheduling, et cetera, is done well in advance. Yes. We are engaged with the customers and are already exploring how many additional batches we can make for them once the COVID-related deal is freeing up the capacity. Fair enough. Sure. Thank you, sir, and all the best. Thank you. Thank you. The next question is from the line of Vishal Manchanda from Nirmal Bang Institutional Equities. Please go ahead. Thanks for the opportunity. Sir, with respect to your drug discovery services, where you have doubled your chemistry capacities, can you quantify how much revenues can it add to your base, and how long will it take to do that? As you know, 50% of our business comes from integrated and about 50% comes from chemistry service. Okay. Hopefully by the end of next year, we would have doubled our chemistry part of the business. Okay. Sir, basically, is this chemistry services has to do with API process development? Is that a fair understanding? While doing discovery work, pharma and biotech companies need chemistry support because they need FTEs, and they need sometimes manufacture of very small quantities of molecules. We do both. Got it. Sir, second on your specialty business, which is currently at a run- rate of INR 630 crores. If I analyze it's at around about INR 2,500 crores. We are almost kind of INR 500 crores running at a run rate wherein we'll be INR 500 crores below the FY 2020 numbers. Does that mean that INR 500 crore number losses has largely to do with the DTPA and MAA business loss that has happened in the current quarter? I am not getting your numbers on the analysis part. Yes, whatever is the impact, because currently that is related to MAA and the DTPA, which are impacted because of COVID, as well as some impact because of competition. Both the impacts are clubbed into that. The entire Radiopharmacy business has normalized. That's fair to assume. The distribution business. It had normalized towards the latter part of the quarter. Got it. Okay. Even in the month of April in U.S., there were the cases, in May and then June month was much better. Got it. That's all from my side. Thank you. Thank you. Thank you. The next question is from the line of Bharat Sheth from Equirus Securities. Please go ahead. Yeah. Hi, sir. Thanks for the opportunity, and good evening, everyone. I just wanted to understand, I would request you to quantify what sort of revenues have come from remdesivir during this quarter. A small clarification, when we say that the COVID-related revenues have been around INR 200 crore, we are not including remdesivir revenue in this. Can you clarify that? In INR 200 crore is the revenue for the CMO, which doesn't include the remdesivir. That's the revenue we get from the North America market for the CMO business that we do for the innovator companies. The remdesivir we have voluntary license for India and other developing countries, which doesn't include the North America market. Both are totally different businesses. Right. Can you quantify how much has come during the quarter from remdesivir? I think the product-specific quantification we should avoid. Sure, sir. Sir, just wanted to understand on the gross margin part, since there will be a bunched-up revenue of remdesivir which will be having a relatively low margin, still our gross margins have improved sequentially. What exactly could be the reason for that? Because remdesivir could be relatively far lower margin and be adding 5% during this quarter. No, margins in the remdesivir were reasonably good. Plus also the margins in CMO for the COVID-related deals were much higher than the normal CMO business. Understood. Sir, just wanted to understand one more part on Roorkee facility. How many products have filed from that facility and what sort of risk mitigation strategies we are taking over there? Are we moving any product to some other facility back in U.S.? Sorry, I missed your question. Yeah. How many ANDA are filed from Roorkee facility, if you could clarify that. How many are we looking to site transfer to some other facility? We have total 98 filings from the Roorkee for ANDA. Out of which 61 are approved and 37 are pending. Which are approved, that's there, but the one which are pending, which we were to launch after the site would have got out of the warning letter. Out of that, few important products we are looking at taking to the other sites. We are, as of now, doing that evaluation. We haven't decided yet completely because this is very new development. Right. How many products will be filed from the U.S. facility in Hollister? ANDA, we file other than from the Roorkee, we file from the Cadista, which is in the Salisbury. Right. Those products had no issue for the approval. Right. How many products are filed? Those products we filed there into the normal process. Right. How many products are filed from there which are pending approval from Salisbury plant? I may not have the exact number, but it's into single- digits. Sure, sir. That's helpful. I will get back in with you. Thanks a lot, sir. Yeah. Thank you. Thank you. The next question is from the line of Ajay Wakhariya from Unifi Capital. Please go ahead. Yeah. Hi. Two questions. First, the entity that you're carving out in the form of a demerger is just a pure-play API business, which is give or take INR 600 crores. Is that understanding correct? Yeah. Okay. Fine. Second, I just wanted to understand that now Triad, our Radiopharmacy business, it's been three years. When we acquired that as well, the business was a loss-making entity, if I understand correctly. Just wanted to pick your thoughts on how this acquisition has played out three years down the line. How do you think about it? Has it met your strategic thinking? What are your key learnings from this, and do you have any timelines regarding the turnaround? Thanks. Yes. In terms of strategic thinking, I'll say that we are very pleased that we have this entire distribution within our business of the Radiopharma. It gives us the direct access to our customers. As well as we continue to grow the pipeline for all the developmental products which are in the development in the R&D, and which we plan to launch soon in the near years. This distribution gives us the readymade market for those products. Whatever market share we have into the distribution, that much market share, we as such get for those products directly as soon as we launch them. Plus, as I mentioned that every buyer would like to have the alternate vendors. Even in rest of the market also, we get the share. Rough calculations, suppose you assume our market share is about 20%-25%, and then we get another 20%-25% market share for the others. When we launch the product, we straightaway hit close to 50% market share. That's a huge strategic advantage we have in this business. That's the reason we continue to focus on this business. You are right. Since we acquired, we have been into red. The reason for that we mentioned earlier that during the acquisition process, because of the regulatory challenges, lasted much, much longer than what it should have been. In the process, customer got panicky, and they had done some long-term contracts with the competition. Those contracts are now coming up for the renewal. Unfortunately, in FY 2021, we had this impact of the COVID. That has made some dent onto it. During the time of the COVID, all the customers were having the priority for themselves to sustain their business and not to look for the alternate suppliers, et cetera. When they go for the alternate supplier, they also have to make lot of changes into their systems for their entire supply chain software, et cetera. During the COVID time, the customers have withheld any discussion on the changing of the vendors. As the situation has started getting normalized in U.S., we are seeing all those customers are opening up for the discussions. We already have a very strong funnel of the various RFP, and we are in the discussion with the customers. That's why I mentioned that we have planned to continue to grow the top line very strongly. As of now, we see that in another about two years' time, we should be at the breakeven in this business, and then we will continue to grow this business and generate positive EBITDA margins. When we see this business as a standalone, but at the same time, it will continue to support our own Radiopharmaceutical business. Thank you so much for that. Just a quick follow-up. Currently from the INR 1,900 crore Radiopharmacy business, give or take, I think, the distribution business is roughly INR 1,400 crores and the manufacturing portion is roughly INR 500. Can you just give me a ballpark understanding that from this INR 1,400 crores, what is the throughput of our manufactured products going through this INR 1,400 crore pipelines, and what is it from the outside? How do you think this is likely to change in the future? Thanks. One is that I'm getting lost in your numbers because they are quite very different than the reality. However, I mentioned, we have about close to 20%-25% market share. In this business, we don't distribute only our product. We are also distributing the products of our competitors. For our product, mostly the priority always remains that we are distributing our own. However, it's not on exclusive basis. We also have to take care of the customer's requirement. The customers may have the contract with our competitors. It's a mix. Sure. could you just give the proportion of- I'm so sorry to interrupt you. May I request you to rejoin the queue for follow-up questions, as there are several others waiting for their turn as well. We would also request participants to please limit your question to two at this time. Should you have a follow-up question, please rejoin the queue. Thank you. The next question is from the line of Shanti Patel, an individual investor. Please go ahead. Hello. Good evening, sir. My question is, what will be your ex- capital, return on capital employed and return on PPE approximately as on March 31, 2022 and March 31, 2023. The second question is, in respect of various verticals, what is our market share in India? If I'm able to understand the question correctly, you're asking return on equity or return on capital? Return on capital employed and return on equity as on March 31, 2022 and 2023. Return on capital employed is 15%+, and return on equity is around 14%+. Sure. Are you expecting the same as on March 31, 2023? No. We are expecting improvement from these levels. Okay. What about market share of our various verticals in India? You mean market share? That's right. We have got a dominating percentage. I mean, how much? 25%, 30%, 50%, 70% in respect of various products. Sorry, this is Pramod here. The market share for which products? Because we have very diversified portfolio, and you are asking for India. That's right. In India, if you may have seen our overall revenue, that in the last quarter was about close to 10%-12%, which also included the contribution from the remdesivir. Other than the other products, what we have in that business, that is a business which we call IBP, Indian branded pharma. That's the business which is the nascent business, which is the incubating business, and we are growing that business quite aggressively now. The overall revenue of that business as of now is not of material. Okay. Thank you, sir. Thank you. The next question is on the line of Alankar Garude from Macquarie. Please go ahead. Hi. Thanks for the follow-up. Just one clarification on the five molecules which have been exempted. Till the time the third-party test and audits are completed, are we allowed to sell these five molecules or supplies of them can only resume once all the tests are done and all the three conditions are met? Yes. Supplies can resume only when the conditions are met. We don't expect to take a long time to meet those conditions. By long time you mean, sir, say, a couple of quarters? No, it could be probably one month, one and a half months, two months max. Understood, sir. Okay, sir. Thanks. Hang up the call. Thank you. Thank you. The next question is from the line of Tushar Bohra from MK Ventures. Please go ahead. Yeah, thank you for the opportunity. Sir, just one thing. Can you help me with the comparison on a quarterly basis, QOQ, for the key headline numbers? Because last quarter you also had life sciences business for some part. Exactly how are we doing on a QOQ basis purely for the pharma business? Quarter- on- quarter, we are doing well in pharma business. We have given the numbers of pharma business in Q4 also, and Q1 also. The numbers are comparable. The Q1 business of last year doesn't include our chemical ingredients business. No, Q4. I'm saying, sir, Q4 business vis-à-vis Q1. If you can just help because the presentation in most places mentions only a YoY performance. Can you just help us with the headline numbers on. Like to like YOY performance. Like to like QOQ performance I'm looking for. It's all like to like. If I can intervene. You are asking comparison of Q4 last year versus Q1 this year? Right, sir. Yeah. The revenue has grown by 4% and EBITDA is more or less flat. Now, sir, my question is that, in this quarter, we had in India as well as maybe some of the emerging countries, remdesivir sales have been strong for the company. U.S., I suppose, relatively was a bit more normalized QOQ. Plus, we would have also had some revenues from the vaccine side. I believe you've been working with some of the vaccine candidates. Despite that, QOQ the performance delta is not visible, sir. Just want to understand why would that be, and also post-COVID, what could be a normalized run rate for the quarter, assuming that we don't have any COVID product-related one-offs, as well as business one-off? What should we look at as a stable quarterly base for a company on which then we should assume growth going forward? In terms of Q4 over Q1, the impact that you are mentioning, not seeing, in spite of higher than that you would see. That is coming from three accounts. One is that our COVID-related deal in Q1 was marginally lower than Q4. In API, I mentioned that we had some pricing pressure on the sartans and some pricing pressure on the generics in the U.S. Third impact was the exchange rate fluctuation, where we had to take some impact of the Canadian dollar strengthening in comparison to the U.S. dollar. Got it. What would be a normalized run rate? Vis-à-vis, let's say, INR 1,500 crore revenue on the pharma side this quarter. When you assume things should get fully normalized, what kind of base should we assume on an average quarter? I will say business to business, you will have the variations. Like some of the CMO COVID deals will go down, we will have the growth coming in from Radiopharma business as the COVID gets normalized. Both these businesses are compensating each other due to the impact of the COVID. Also we need to watch the pricing development onto the API and onto the generic space. We should see the recovery over there. Just a follow-up on this. On APIs, as you mentioned, sartans being one of our key product baskets is facing pressure. On the generic side, given our plants are facing regulatory issues, couple of key plants. Some of the growth has got hampered. How exactly do we expect this basket to grow? On the Radiopharma side, would it be fair to assume that since a large part of your normalization is to come from the Radiopharma business only, which remains a high margin, it should more than compensate for the drop in margins because of the COVID-related business. On an overall basis, as the things get normalized, should we see a gradual improvement in margins further from here? If the lung scan procedures comes back to the normal level, then what you are saying is right. The only issue is that we are seeing that bit slow, the recovery. However, we are making efforts in terms of conducting the webinars and educating the physicians to start using these scans because the entire procedure is absolutely safe. The SNMMI has also issued the guidelines that are asking all the physicians to go back to admin the DTPA because the entire procedure is safe. The efforts in that direction are going, and we have to see the recovery over there happening. Overall, when that happens, then the business should be back to normal. Then we will bring the additional project which are into the R&D. We also continue to grow the Roorkee. We also will have the capacity in the CMO to grow our other products. The Allergy business continues to do well. In API, we have the traction for the volumes. Though we will have impact from the Roorkee for the supplies to the U.S. market, but then Roorkee will have additional capacity available to take care of the rest of the world market. When you look at all these, there's many of the opportunities for us to grow, then just the lung scan procedures where the recovery is little slow, hence there are many other places where we can not only compensate that, but grow even more. Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to the management for closing comments. We thank you everybody to joining on this call. In case you need any further clarification, please contact our investor relations, and we'll be happy to answer all your questions. Thank you. Thank you. On behalf of Jubilant Pharmova Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.