Ladies and gentlemen, good day, welcome to the Q3 FY 2023 earnings conference call of Best Agrolife 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. Rahul Thakur from Ernst & Young. Thank you, over to you, sir. Thank you, Lisa. Hello, good afternoon, everyone. I'm pleased to welcome you all to Q3 FY 2023 earnings conference call of Best Agrolife Limited. Please note a copy of all our disclosures is available on the investor section of our website as well as on the stock exchanges. Anything said on this call which reflects our outlook towards the future or which could be construed as a forward-looking statement must be reviewed in conjunction with the risk that the company faces. Today, from the management side, we have with us Mr. Vimal Alawadhi, Managing Director, Mr. Raajan Ailawadhi, Executive Director, Mr. Atul Garg, Chief Financial Officer, and Mr. Davinder Dogra, President Finance. I now hand over the call to Mr. Vimal Alawadhi for his opening remarks. Over to you, Vimalji. Hello, everybody, good afternoon, thank you and welcome everyone to our Q3 FY 2023 earnings call. I would like to wish you a warm and a happy new year. May this year bring joy and opportunities in our lives. Before I jump into the business performance for the quarter, let me highlight some important domestic industry trends. Third quarter is usually a weak quarter for the domestic agrochemical business. During the start of quarter, we witnessed extended monsoon across India, which resulting in farmers delaying sowing of crops. This delayed of purchase of agrochemicals product leading to higher channel inventory. That said, the sowing picked up soon, if you look at the area sown during the quarter across main rabi crop, there is healthy increase in acreage across the crops driven by remunerative crop prices. Having said that, higher inventory across channels affected the demand for agrochemical manufacturers. Even during such slack demand environment, Best Agrolife Limited was able to deliver industry leading growth with revenue of INR 328 crore for quarter three, which was up 41% on year-on-year basis from last year. We also witnessed strong margin expansion when compared to the same quarter last year. Me elaborate our performance for the quarter. Overall, we continue to see good demand across our business segments. Our existing branded product segment continued to see good traction in the market. The contribution for these product was strong at around 60%, and technical business was also up when compared to same last quarter year. All of this indicates a strong performance across business segments for the quarter. During the quarter, the new product launch in H one contribute to growth in the this quarter also which is one of the factor of growth in this lean quarter. Our pipeline continue to grow with additional a few more products to the pipeline. If I were to check the pipeline for you, one, we have started working on the product based on strobilurin chemistry. Second, we have a strong pipeline of combination product which are different stages of approval registration. The third, we continue to file 9(3) and nine-four opportunities which will provide us business head start. Later these will use towards better integration of our products. I am delighted to inform you that we have received two 9(3) registrations recently. One of them is Propaquizafop used for the post emergence control of a wide range of annual grasses in various broadleaf crops. As a selecting and systematic herbicide, it control weeds in all the stages of their development. Second is Cyhalofop-butyl. Apart from this we have Clothianidin, Ametryn, which are very big product. For this I will hand over later on to Mr. Raajan Ailawadhi, our Executive Director, will brief you according for these products in detail. Now, you can see we have strong products in the pipeline for the coming years, and as informed earlier, we plan to launch at least one, minimum one patented product every year. As you know, we have received patent for three products, out of which two are yet to be launched. We are planning to launch these products in FY 2024. Along with these, we will also launch Section 9(3) and Section 9(4) technical, as I mentioned you earlier the names, and other niche combination products having better realization. This is in line with our strategy of replacing low realization product with higher realization product. You must have noticed that this change in product mix has already started showing up in our margins. We are on track to change the product mix as well as segmental mix. By segmental mix, I mean, we would like to have higher contribution from B2C business, our branded products business, movement by B2B business, and reducing contribution our technicals as we plan to use most of the technical for backward integration purpose in the future. Coming to expansion plan, we are setting up an herbicide line at our Noida unit, which formulation I believe this will completed in FY 2024 at the Greater Noida unit. We are planning capacities to fulfill future demand and also for problem chemistry-based product. We do not expect this is a bigger CAPEX as it is brownfield expansion. That is purely machineries and virtual CAPEX and other utility are already present at the plant. We also continue to strengthen our distributor reach and farmer connect with various initiatives across India. On the export side, our registration filing has also picked up, and we continue to remain very positive to the export opportunities in coming years. To conclude, overall demand, environmental picking up as inventory levels go down across channels, coupled with expectations of the remunerative crop prices, make me confident to delivering strong growth in coming quarters and the coming years. Now I would hand over the floor to Mr. Raajan, our executive director, who will take you through the products. Good afternoon. This is Raajan Ailawadhi, I'm associated with this company as an Executive Director. I welcome you all in Q3 earnings calls. As briefed by Mr. Vimal Alawadhi also, Best Agrolife is differentiated from competition from other companies, where this year was a little bit different year. We are differentiated from others by our approach of bringing one-shot proprietary solution in various segments. Segment-wise, we are working on a different kind of a one-shot solutions where multiple pest and weeds could be controlled together. One such product was launched by us in quarter two, which was for sucking pest, all sucking pest and for cotton and chili, and that product contributed, it kept on contributing in quarter three also to a great extent. Such kind of novel one short solutions we are working for different crops, different segments. We are covering not only cotton chili, we are covering paddy, which is vast geography in India. We are covering sugarcane also. We are covering corn. We are covering various soybean also. Different herbicides we are working on, where narrow leaf and broad leaf weeds can be controlled together. Same way, this we are differentiated from others by bringing this kind of solutions and import substitute mainly where we are basically first indigenous manufacturer of such products like chlorantraniliprole. We became the first company to launch this huge molecule, which has the very big market size, number one molecule of India as well as globe. We became the first company to enter into this segment with our own different process. There were various process patents involved, we bypassed those patents and we launched that product. Similar, this growth in quarter three was contributed by even another niche product where two fungicide and one insecticide was there. It was a product for seed treatment, it contributed in rabi sowing period also, rabi seed treatment also. Other segment, major segment was BPH and blast segment of paddy, which was major Q3 segment. Our AxeMan, Zodio, PYMAX, Styron, these brands were there to control blight, blast and BPH in paddy crop. These products contributed and this growth path will be maintained by some other new products also which we have got in 9(3). Propaquizafop already explained by Mr. Vimal is a very big molecule, is a systemic herbicide for narrow leaves, for various broad leaf crops like soybean and cotton and goes in various groundnut also. Cyhalofop-butyl is also a systemic herbicide for paddy crop. Ametryn and Clothianidin also are very big products. kind of three-way combination we are anticipating to launch soon also, which will be a very big product. it is a, it is basically a fungicide. It is a combination of three fungicides where which will provide one short solution to control late blight, early blight and downy mildew, powdery mildew in various crops and various segments. It is already an established fungicide, multinationals importing one of the active ingredient in in this product. We are upcoming with our own novel formulation which will provide a wonderful solution, one short solution to farmer to control many diseases in multiple crops. It is a broad spectrum systemic fungicide which we are planning to launch soon and which will start contributing from quarter four itself, I believe, starting from Kashmir Valley in apple segment. Such kind of novel solutions and those import substitutes we are working on, which will keep on contributing to up to a great extent and will in 2024, 2025 will take this company to new heights, I would say. Thank you. I will hand over now to Mr. Dogra to take over. Yeah. Thank you. Hello, everyone, and thanks for joining us here today. I would like to briefly touch upon our key per-financial performance for the quarter, after which we will open the floor for questions and answers. For the quarter operating revenues were at INR 328 crore as compared to last year of INR 233 crore, which is at 41% growth. This was mainly driven by our branded product business, which now has a large range and then geographical expansion happened compared to last year. EBITDA was at INR 58 crore in Q3 this quarter as compared to last year of INR 32 crore. A growth of around 79% this year. This translates to around 18% EBITDA margin in this quarter, an expansion of 380 basis points over the same quarter last year. Higher EBITDA margins were driven by higher contributions from the branded product business. PAT was at INR 31 crore in this quarter as compared to INR 15 crore in last quarter, last year quarter, a growth of almost 100% this year. Coming on the segmental revenues from branded formulation business continue to grow. Almost 60% of the segmental revenues come from branded formulation business, which is B2C and B2B both combined. On the balance sheet side, our working capital for the quarter remains steady at around 110 days, with improvement in receivables. With the cash and cash equivalents, including bank balances, are at around INR 118 crore as of this quarter end. We have a net debt of INR 431 crore. With that, we open the floor for Q&A. Thank you. Thank you. Ladies and gentlemen, we will now begin with the question- and- answer session. Anyone wishing to ask a question may please press star and one on your touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is on the line with Siddharth Ghadage from Equirus. Please go ahead. Hi, sir. Sir, just wanted to understand that when we spoke of this 41% growth during the quarter, if you can give a split between growth in the existing business and growth from the new products that were launched during the quarter? The growth from the new products, which we have launched very recently, almost contributed around 30%, of the overall volume, of the overall growth. I would say the majorly growth has been, driven by the new products only. Is it fair to assume that the base existing business would have seen a decline which was offset by the growth in the new business or that was also up YOY? The existing business, I would say it remains flattish. As we are ourself also, primarily focusing on new products which are much more, higher in revision and margin potential. It's majorly we are driven through new products only. The existing base remains flattish. Okay. In terms of now when we are entering into the Kharif season for FY 2024, how do we see the inventories and how do we expect placements for the first half of FY 2024? If you can give some color on that. See for FY 2024, though we have not given any guidance, but as we have expanded geographically into pan-India basis and our branded B2C business and both branded B2B business looking very promising, there will be as we are adding products, new products as Mr. Vimal ji and Raajan ji have pointed out. We say that inventory levels will remain a little bit in the same range or little bit elevated because these are growth, both geographical and product line and the amount of backward integration because most of the products, formulation products which we are launching, we are also having the technical capacities and respecting the technical potency. The inventory levels, I mean, for the next 12 months or 12 will remain at the current levels or little bit may fetch. But that's due to the reason of both geographical and product expansions which we are having. Basically even for FY 2024, our products which we launched this year and next year will be the entire growth factor. That is a fair understanding? Yeah. Along with some new, some products which will be launching in addition to what we have talked about, apart from the product launch this year. This year because these products which we attract, Ronfen and CTPR, the base formulation, we were only able to launch the part of the season. Next year is the full potential for these products. Apart from that, we are also, as we mentioned about some of the SPS and other new products which Ajanti and Kavaldi have added. After next year also that growth will be provided by the existing products which we already have and the new products as well. Okay. From the growth, we can say that we are always giving guidance of 30% of the growth and 20% of EBITDA. Of course, the 30%, this year we can say it will be more than 45%. But in case of 45% of growth, even we are maintaining more than 30% of EBITDA, as the growth will be high because our main focus on the margins, on the EBITDA, and the new chemistry. Whenever we go for the new chemistry, definitely margin will be there, definitely there are new chemistry and the market will be there, different segment, different market. We can say that the EBITDA will keep, you know, more than 20%. We will try to keep this margin alive even the growth is higher than we are expecting, which we are committing with 13, whatever. This year it will grow more than 45%. If we can see this, 3 quarter and 4 quarters. CTPR, we will be manufacturing in-house? Yes, we are manufacturing, technical AI as well as the formulation in-house. Both in-house. Okay. Thank you so much. Yeah. Thank you. Thank you. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in this conference, we request you to limit your questions to two per participant only. If time permits, you can come back to the question queue for a follow-up question. The next question from the line of Ayush Agarwal from MAPL Value Investing Fund. Please go ahead. Sir, I hope I'm audible. Yes, yes. Good afternoon, sir. I have two questions. One is, how many 9(3) do we have currently, and what is the contribution from 9(3) products in nine months and this quarter? No, you said how many 9(3) products we have and. Currently, yes. No, no. As of now, we have more than 10 products we have 9(3). Right now I don't have list, but more than 10 products we have 9(3), which is technical. If you talk about formulation, that is apart from this. That is again, there is a list of 9(3). Okay. What is the contribution from these Section 9(3) products in nine months and this quarter? Which is existing 9 months, you can say, out of this 9-3 it is around 60% of the product you can say from this last 9 months. Okay. What I would like to understand is, you know, when do we start seeing competition coming in in these Section 9(3) products and how badly do margins take a hit? No, that is not true because 9(3) is not the only product which we are which people are getting because if you see in the overall market because everybody has their own focus. The companies, like, you know, they are doing for some of the chemistry and from last many years they are doing the same chemistry or maybe they are focusing on one kind of chemistry or maybe if they are changing also again, there is two kind of chemistry you can say. Here we are doing, you know, which are product we are changing, we are doing. You cannot say everybody is coming. It's not only the product decision, it's according to the your R&D base, it's according to your plant factory, where you will product the produce, you know, produce the product. That is again two-three year challenge to make that plant. It is not so easy to you can say, everybody will come. Apart from this, from the 9(3), we are our own proprietary that formulation also we are developing with that 9(3) molecule. That is again for 28 you can say. We are focusing not only 9(3), we are also focusing on the, our segmented product also. With that 9(3) only. With the 9(3) technical only. Okay. Okay. Understood. My second question is on our subsidiaries. We see that our subsidiaries have been making very high margins in the last nine months. I think if I just look at the subsidiary numbers, our margins are more than 70% in here. How is that happening, sir? Like, what is leading to that? Why do we not see costs like, you know, the power cost, logistics cost structure, and despite that we are making like such high margins. Firstly you need, you need to look at consolidated numbers. Reason being all the marketing related costs, all the corporate costs and they are majorly part, they are part into the main entity. The subsidies are not carrying the exactly entire cost. The entire cost because these are, the subsidies are entirely manufacturing entity. Thereby, it only captures the manufacturing cost. Also this year, whatever Section 9(3) and the proprietary formulations which we are manufacturing, the margins and realization are substantially better. You see that way, but in for the, from the result perspective, you need to look at our consolidated numbers. The expenses are not captured entirely in the subsidiary entity because how they are incurred. The 70% is still a very high number for manufacturing entity. Madam, this is just a follow-up on this one. Last question. It's not only, you know, the manufacturing we are getting 70%, say, Vimal Kumar want to tell. This is not only the 70% which is the margin is coming from the manufacturing only. It is because of our proprietary products. Like, we have, you know, own brand the product is the CTPR formulation. That whole, because of that unique products that you can say that is also there because of the manufacturing. We can continue to do this. Yeah, definitely. We see as a, you know, consolidated only always our managing our numbers and, like this way. Also to clarify, these subsidiary companies are majorly supplying back the product. Firstly, it's based on backward integration, the products are entirely the subsidiary companies are supplying back to the company. There is intercompany sales which is for that reason also you need to look at the consolidated results. Understood. Thank you for the clarification. Thank you, sir. Thank you. Ladies and gentlemen, we would request you to limit your questions to two per participant only. The next question is on the line of Giriraj Daga from KM Bisaria Family Trust. Please go ahead. Yeah. Hello team. First of all, congratulations on getting good number of approvals in last two, three months. My question related to you mentioned somewhere that CTPR we are going to like this year the growth and this year and next year will be driven by CTPR also. Just want to understand, have you launched the product in the market? What kind of traction we are seeing? What do you expect from CTPR sales in FY 2023, like this year and next year? In fact, the CTPR we have launched in Q2 only in 23 only. FY 2023 Q2 we have already launched the CTPR in the last month only, but there was very not very big sale. Quarter three for CTPR is again not very big market, but still we have sold, you know, if we talk about the number, only CTPR in around three and a half months you can say or four months from September to December, which is lean period for that, but still we have sold INR 45 crore of CTPR, two formulation. One is 0.44%, and another is 18.5% SC. There are two formulation which we have sold INR 45 crore till quarter three. Definitely in quarter four we will see the, you know, sale of the CTPR and next year it will be fully. Next year it will be very big molecule in our basket as a volume wise and. by year end in actual. Yeah. By year end of financial year 2024, Mr. Rajaan, you know, you pick up. Yeah, Mr. Rajaan will tell. Yeah. From CTPR we are further as we are as our model of operation is also there. With from CTPR also we are bringing novel solutions also. The further combinations of CTPR will be novel combination, proprietary patented combination. By the end of financial year 2024 we'll be launching our combinations also in both liquid as well as granular formulation for different segments. Sugar, sugarcane is a very big segment. To manage resistance little this product which is solo formulation is coming. We are upcoming with a very unique and wonderful solution. Which will be very big product potential wise. Somewhere in coming years you can beat original brand leader also in this product, I'm sure. Okay. Which is the seasonally most impactful quarter for CTPR? Second quarter. Most. Okay. The second quarter also placement will happen start from the first quarter. Is this right reading? No, no. It, you know, depends, Giriraj. If you talk about the placement, the fourth quarter will be very important. Again, first quarter, because you know, you can say third quarter is lean for the CTPR. Other all 3 quarter will be good. Second of course the best if you talk about the best number about the selling, that will be second. The first, second and fourth will be all will be great. Fourth and first quarter, means fourth quarter of this year and first quarter next year are going to be very big for CTPR. Basically it is major segment is sugarcane, where March is sugarcane and green gram, where March is the ideal time for going this formulation in the market. March end this material will be placed. Okay. Sir, just picking up from your comment only that we will be like, almost near to the leader, meeting the leader in CTPR. Is this what you mentioned? Because the total sales is very large, right? No, no. Yeah. Please repeat your question, sir. This with this novel combination, I was saying this. Okay, novel combination for FY 23. Yes. In coming years, starting from FY 25 with our own novel combination, we will be able to overcome the resistance which is coming in different segments, different pests basically, majorly in sugarcane. In coming years we will create a potential to beat the brand leader also with our novel combinations in comparison with the solo formulation available. Okay. What is the size of this market? One moment, Mr. Daga. Sir, maybe. It's a big size. Yeah. Yeah. When it will come Yeah, the 2,000 crore plus market size will be there. Sorry, sorry. How do you mean by that? More than INR 2,000 crore it will be there, but it will come and it will start in FY 2025 and it will be for, you know, our secondary products, the 20-year second we have. This will start from FY25. Okay. Okay. Sure. Thank you. Thank you. The next question is on the line of Viraj Mahadevia, an individual investor. Please go ahead. Hi sir, congratulations. Tracking your company keenly. I had a question at a more fundamental level. There's so much competition in the agrochem space, including the domestic market. Where does your differentiation come from? Is it the ability to make these combination products? Why can't others do it? Is it the ability to make technicals at the back end where you get a 20-year sort of patent? Where does the differentiation come from, and why can't others replicate what you are doing? Yes. Hello. Actually, in different sheet, impacting your question, I said two, three things, and these are the main. Combination of all three that we. Yeah, I mean, you already speak in your, in the question. This is all of the combination of three. There is no one way because in the backward integration at technical level, if you see, we have Mr. Karnekar on the board and his army of, you know, technical manufacturing capability and R&D level. Of course, there is one strength, which is AI strength, which we are creating. The other strength we have our patented products, not only in the formulations, it is again in the technical AI side of it. Process patent also we are, we have. We are applying and we have some more. These are ways we have strength. Our own patented products, that is again another strength. Formulation, if you see our formulation, when farmer use or the distributor use that, they know that formulation is such a unique formulation, because we are giving that. You know, the same formulation if other companies are giving or MNCs are giving and we are giving, that is, you know, there are many things we have to see the particles size, so many things. We have spent more than INR 60 crore on the formulation in the Noida plant. That is only because of our quality and all that. Yeah. Raajan want to add something? Yeah. It is basically, like, it is strength of giving those products which were import substitute by bringing new registrations, new 9(3) registration, and then from those new registrations to bring all together new solutions, new solution for farmers. This Ronfen was a product where various stages of all sucking pests, egg, nymph, adults, and all sucking pests also, jassids, aphroid, whitefly, together can be controlled. Number of sprays of farmer also came down with it. It was not just a simple combination or just an admixture. Same way, next month probably we are going to launch another product also where our major claim of that formulation is where one component is sulfur, which is in a non-active form, means it is in very less percentage form, which will act as a catalyst to improve efficacy of other two active ingredients to three times. It is pure science behind this, pure R&D, pure knowledge behind this, new one short solutions. It is not just we are mixing it, we are just combining it. That anybody can do. These logics where we are doing like in Ronfen active ingredients, when solo active ingredients, it was going as 125 gram per acre. In our formulation, it is going as 54 gram per acre. Even then, performance of the product on various tests, it is much, much better than the solo formulations. High synergy is there. That all we are bringing those products, those AIs together, where synergy, where they are reflecting synergy, where they are bringing cost down, where they are bringing number of sprays of the farmer down. These are creating value for farmers with those products. That is a, only these are, they are, bringing colors in first year itself. It is not easy to do but we have it. You know, why can't large agrochem companies like UPL or Rallis, they also have very strong R&D, very strong capability, very strong backward integration. Why are you able to do what they are not doing? Or why are they not doing what you are doing right now? No, we cannot compare with UPL or Rallis or any of the company because everybody has their own strength. UPL has very big strength for the, you know, different product, different pipeline. Again, I would, because earlier question also I said, you know, it is not so easy to put a plant in the products and the level we are doing and, you know. Because when, you know, any of the company, I will not say name, but any of the company that they are doing some of the products already in their pipeline and they are doing from the many years, so they cannot move all of a sudden from the new chemistry, new things. Definitely this is advantage. We are new in the industry also because we are not very old, like 50, 60 year. Definitely we are taking advantage for the new because we can do that new product, new chemistry, new plants according to that. We are putting everything as new. This is chemistry, strobilurin chemistry we talked about. Yes. This selection of products comes from our close association in working with farmers also. That is also our biggest strength, I would say. You can be more nimble. Pardon? You can be more nimble in products. Yeah. Yeah. Testing and launch. Yeah. We working with close association with the farmer. We are trying to find those, identify those gaps also where some product is required by. That is also a strength, new product development with team is there in the market. Understood. My second question, sir, is what is the impact of raw materials, you know, this fluctuation a lot on the raw material front, globally. What has been that impact on your cost structure and COGS, and are you likely to see that improve with raw material prices coming down? definitely there is some big, because when raw material price is going down, definitely, there is margin will improve also. You expect that to kick in from Q4 or Q1 in the new financial year? No, new financial year you can say the major. It is not greatly. In fact, you know, I want to tell you, because we are purely doing for R&D-based, like your product, some of the product we have margins like 50%, 60%. This we are talking about some of raw material that only impact, you know, not more than 5%, 7%. It's according to some of the raw material, not all. Whenever there is very drastic change, definitely we also will reduce the price of the material. Also take higher the pricing, the recent very hike in the price of raw material. This is not a very major concern about that because we are purely R&D-based company. We are purely secure margins as a total. That doesn't influence too much to us. Even, even the higher price, even the lower price, then of course, there is minor change in the margin you can say. When the price is lower, the 2%, 3% margin will be higher in the total cost. Right. How much can CTPR do in your assessment in sales in FY 2024? You said 2025 will be a big year, but in 24 before your novel combination, you said INR 45 crores you've done in the last four months. As I extrapolate that to the full year being seasoned in Q2, can you do INR 300 crores - INR 400 crores in sales in CTPR in this FY 2024? Very easily we will achieve INR 400 crore in CTPR. Very easily we will achieve in FY2024. Right. Okay. Thank you. All the very best. Watching your company closely. Thank you. Thank you. you. The next question is on the line of Harish Desai from PhillipCapital. Please go ahead. Good afternoon, sir, and thanks for taking my question. My first question is on the new products that we got the registration for, that is Michael and Propique. Pardon me for mispronouncing. When do we expect to launch these products, and what kind of revenue are we targeting from them? Propique 福. Yeah. Yeah. Propique is a herbicide for an annual and perennial weeds. It plays a significant role in first quarter mainly. It is required in first quarter mainly. April, we are planning to launch this product. Okay. Sir, any sign on revenues that we are targeting? If you can just give me the market size for this molecule in domestic market size. Yeah. Market size around 2,000 square. It is around, yeah, INR 250 crore worth market is there. We believe that 40% share we will be taking this product. Okay. Right now we are the, we are the only guys, right? Yeah, we are the only producer. Yeah. Yeah. Sir, the second question is, sir, what is the status of pyroxasulfone registration because, last, I think in December cycle, the registration was rejected, and then in January I saw that UPL re-received the registration, the technical registration. What is our status, sir? No. We have already get registered that product. Already we have registered, we have not launched that because that window is very small. The third quarter was the real consumption period. We got that license in even January only, the final license of the. We definitely in FY 2024 or you can say, this year only, maybe our sales will start in September and October 2023, and the third quarter you can see that will come for sure. It will again be a big volume for this business. Okay. Sir, on this, on CTPR side, after the molecule went off patent, we have seen a lot of companies receiving the registration. Is it going to be a threat for us, you know, sharing the revenues with these companies? Because we have seen the S&P market share for CTPR has gone down after the molecule went off patent. Is it a threat for us as well? No, no. I am telling you, actually they have many patents in India. The main parent company have many patent in this, and no, actually anybody can, you know, produce this so easily. We have different method of producing. That's why we, you know, already we get the clearance. Not so many players. Of course, there is three, two, three players will be there. Again, I will repeat because we have a different plan in FY25, you can see our novel combination of CTPR. Of course, after three, four years it will be there. What is your question? There will be many people maybe after three, four years because they have one patent in by one patent is getting over in 27. After that, many people will come in CTPR. till then, you know, our so many novel combination will be there with the CTPR, and that we are assuming it will be very big product in the, in the, in that years. You will see in FY25 our novel combinations. Yeah. Okay. Sir, in last two registration cycles, we have seen Best Agrolife receiving a lot of 9(4) registrations. What is the plan behind that, sir? Definitely. Like, you have seen hexaconazole, you have seen amitraz. That is a very big product. Amitraz we could talk about. That has very, you know, very big molecule as a value-wise, as a volume-wise, you can say, human product. That is replacing, you know, many other product like metribuzin, atrazin is a, you know, traditional generic product. That is an amitraz. We have very big plan this year to produce. That is again 9(4). It doesn't matter because we have already changed our atrazin plant to this amitraz plant. This is new chemistry and new product for India. We can say not very old product. It was very small in earlier years, now it is, this year we are planning more than 1,000 tons for this amitraz, which is again, will give us very big numbers. In the nine product, this is one of the two product I'm telling. We own the product, very, nobody. Okay. Sir, my last question is on Ronfen, sir? Yeah. Thank you. Thank you. Thank you, sir. Yeah. The next question is on the line of Deepak Poddar from Sapphire Capital. Please go ahead. Yeah. Thank you very much, sir, for the opportunity. Sir, I just wanted to understand now, first up, you mentioned that our focus is on scaling above exports, right? Even the focus is on higher margin product. Some thought process that you can lay down on your margin trajectory over the next maybe one to three years. How do you see that, given that there should be an upside bias, right? Given the export focus as well as on the high margin product. Definitely. Export also we are not looking like a generic export, which maybe rather so many companies are doing and some are doing, you know, because we are the best we are creating in India. That the same way we want to create in the export market also. That's why it is taking some time because we have from last two, three years we are changing that and of course it will take some time more. Once we will develop one of the market, let's say any of the, like Southeast Asia, any country of Thailand, Vietnam, any of the country, we are also, we are going in the model with our patented product, which is something unique, which is very unique to see any of the Indian company, because there you will see in that level our MNCs companies are only doing this kind of job. They are making some new patented product and they are selling throughout the world. As a Vestagro, we are also doing in the India and also for export, you know, in the unique combination we will, that B2C that we will do in the different countries. That is something different. Of course we are doing B2B also there, but that will be again like we are doing in India this year, you know, FY 2023. Right? FY 2023. The same way you will see in FY 2026, 2027, you will see in different countries, different regions. The same way we will grow because our path will be grow, going path will be all R&D and new products only. New product we will launch in the export, yeah. how do. Margin will definitely improve. You have question on the margin. Margin definitely will improve because in the export there is different kind of synergy in the product and margin definitely will improve for sure. Okay. Okay. I mean, is there any kind of like 50, 100 basis points per annum is what we might look at, I mean, on a conservative basis? Here we, even without exports because the new products have been launched, in this part of this season, but the next year they will see the full season. Even, say, without geography from export, with the existing products also there would be margin expansion. I can't quantify, but definitely 100, 200 basis points is a kind of room which is there even without the export business. Fair enough. I understood. My second question is on your, I mean, how do you see the growth part, I mean? Now you mentioned about a lot of product that we are looking to launch, right? Even the CTPR and the Ronfen is also likely to scale up, right? So how do we see the revenue growth that we might look at over the next maybe two to three years? As you, as we gave the guidance of 30% growth this FY 2023, we are more than that. You have seen that almost, I think it's 40%. Likewise, we have not worked on the final plan for the next year. Definitely these are the levels because of recently the geographical expansion and new product and export segment. I think, these are the levels which will be maintained. We haven't finally quantified the next, say, exact numbers, but these are the 30% to 20%-30% is the bare minimum or the level at least we are working on. Fair enough. I got it. Yeah. That's it from my side. Thank you very much. Thank you. Thank you. you. The next question is from the line of Ranvir Singh from Nuvama Wealth. Please go ahead. Yeah, thanks for taking my question. Can you help me with a split of revenue between formulation and technical for this quarter? Yeah. For nine months we are around 60%, say, is from formulation business and rest is from technical business. Within formulation we have B2C and B2B segment. Both are connected to our branded formulations only. We can say 60% is from formulation, which is purely branded formulation and rest is the technical part. Sorry, I missed. B2B, how much you say? 60 and 40%. Overall formulation is 60, where we have B2C contributes almost 35% and 25% is the B2B segment. Within the formulation, 35 and 25 is the split. Okay. Okay. Understand. Was there any revenue from exports during this quarter? No, no. Okay. No export revenue. Oh, yeah. Yeah. In CTPR, how is the competitive scenario now? How many players currently have launched the product in a combination, in like, you know, in a mono, you know, molecule, segment? 3. Yeah. As mentioned by Mr. Vimal also, there are various process patents and other kind of patents are involved in this product in invent of inventor. 3 players were successful in launching this product so far, who have bypassed their process, who have submitted their own novel process in the court. After scrutiny of the process, only 3 players have been allowed so far to launch this product. Even other have not got the permission from the court. Many people have been injuncted also. Okay. It is likely to be a four or five player market by next year in your assessment? May, maybe one or two players may enter. It will also take long time for them to enter. Only those who were preparing since last three, four, five years have been successfully entered in this. Okay. What price cut we have taken, as compared to innovators, in CTPR products? We committed also, and we, you know, corrected our price in the range of 20%. We have corrected price to... Direct benefit of this, 20% drop can be passed to farmer. For that also we have reduced our... In institutional business also this product is very big. We have a farmer price directly also, we have given 20% less than that in innovative to pass on the direct benefit to farmer. Can you confirm Natco has also launched or they are yet to launch? Yeah, yeah, they have also launched. They are also 1 in 3. Okay. between Natco, JSP, and you, the pricing is almost same. Everybody has taken same price cut or, is there a variation here? They more or less are sitting in same bag. A little bit variation is also there. Yeah. Okay. Okay. Fine. Fine. Next one, related to Ronfen. How much inventory of Ronfen is currently lying in balance sheet? I understand that, you know, number, right number, I'm not sure whether you'll have, but, if you could just give an indication, because the last quarter, by, second half, end of second half, the inventory level was very high and payable was also very high. I, you know, assume that that was related mainly to Ronfen. How much. It is basically no inventory of final product. Some inventory pertaining to because we are backward integrated in this active ingredient, which are part of Ronfen. Inventory in the form of intermediates, raw materials, then active also up to some extent is there. There are various other products also in this inventory, which is part of our basket for next year. It is not only Ronfen inventory. Ronfen final product inventory is very less. Definitely some product was there, which is, you can say technical. Some of the products like [uncertain] and [uncertain], there were inventory, but that will be clear by, you can say first quarter of the, you know, FY 2024. Okay. inventory would have come down significantly in this quarter? Fourth quarter. The fourth quarter you can build the number if you want the number. It has come down, but not in a major value, but it has come down from Q2. By Q4, the major is what we are expecting when we can further go down. At the current Q3 levels, the inventories are, I would say, at the same level as Q2 only. Definitely in this growing phase, the total, if we talk about, within the 12 to 15 months inventory, and this will be very down. It will come drastically down in the next 12 months. If you talk about quarter to quarter, because it's growing phase, the new products, new chemistry, everything we are adding up and our target is like more than 30%. Even this year we are growing 40% and the EBITDA margin 20%. Definitely it is not really very easy to control each and everything. Definitely within the 12 months you will see very drastic change, changes in the inventory and other, you know, data level also. It will take some time, but definitely you will see very drastic change in next 12 months you can say. Okay. Okay. From Ronfen, earlier we used to, you know, estimate some INR 350 crore kind of revenue. Can we reach that, after, you know, already we have elapsed now, you know, two full quarter. What is your assessment now? Ronfen INR 350 crore for the from the previous. Yes, we have given and, definitely, if not INR 350, maybe INR 330, INR 340, definitely we will reach that. Not maybe, not the real number, but, around that we will achieve for sure. In this quarter also we have something from Ronfen? Yes, we have. We We have this quarter also. Okay. like, you know, last quarter, just last one, this is a related one. Sir, there are participants waiting, sir, for their turn. Oh, okay, no issue. No issue. I'll discuss offline. Thank you. Okay. The next question is from the line of Gaurav Sathe from Fortune Financial Services. Please go ahead. Gaurav Sathe, Ronfen, what kind of market share we are looking in FY 2024 in terms, of market share for Ronfen? The market share of. I think you said 8,000 market share. Ronfen in FY 2024, minimum will be INR 500 crore we can say. Only Ronfen in FY 2024. Will it be in which quarter? Q4, quarter four for Ronfen. No, Q4, I'm telling you that will be again, we will achieve whatever number we are saying, INR 350 crore, INR 340 crore as a year. That we will achieve in this year. For next year it will be more than INR 500 crore. FY 2024. Okay. 1 question, sir. Promoters are increasing stake in the company. That also gives us confidence in the company. What kind of stake you are looking for in the next 2-3 years, if you can answer? Right now, I cannot comment on this. Definitely, we have full, you know, to strengthen our product, we have everything. Definitely. Right now I cannot comment on this to be what we have planned or not. Right now there is no big plan as such. Okay, okay. Thank you. That's it from my side. Thank you. Yes. Okay. Thank you. The next question is on the line of Rohan Gupta from Nuvama. Please go ahead. Good afternoon. A couple of just clarifications. First is on our employee cost, on quarter-on-quarter has gone up very sharply from in Q2 almost INR 11 crore to INR 14 crore, now INR 14.5 crore. Just wanted to understand that, what is leading to such a sharp jump on a quarterly basis. As of now, our employee strength is close to 700 people. It's on a base each and every quarter as we are, say, primarily because of the B2B expansion, geographical expansion, like we have already also opened regional office in Hyderabad. That just to open. There is a number of employees have increased because primarily as we get into new products, new geographies, there is a substantial increase in the both the sales and marketing and also support staff from the corporate office. That will be basically reason as the number of employees have gone up due to the expansion plans what we are having. Sir, in general, Have we done all the required addition or still it's going on? What can we analyze the employee cost for the FY 2024, if you can just give some rough number on that. You can say for the Q3 run rate, there will be certain additions in employees in Q4 for the next fiscal. We haven't finalized put the numbers. The reason being the number of products which we have talked about. We are looking at adding employee strength for the new products and new geographies also. Say for the Q3 run rate, there will be, you can say there is 15-20% kind of overall increase on a run rate basis, full year run rate basis. Because we are still in the position of adding employees. Okay. sir, just second, you mentioned on the inventories front, it is generally broadly in line, not much reduction from the first half number. sir, can you just give some idea, I'm not looking for the exact number, but some idea on the receivables, it is also at the similar level or it has come down? as you. Receivables have come down significantly. Our commentary, receivables have come down because of the major realizations have come in Q3. The inventory levels have been at the similar level. Okay. Sir, if you don't mind, can you share what is the cash in the balance sheet right now at December? Cash is around, as I said in my opening comments, INR 180 crore of cash and cash equivalents we have in the balance sheet right now. INR 180 crore. One, one, hundred eighteen. One one eight. INR 118 crore. Okay. Just last. Our net debt is around INR 420, INR 430 crore by Okay. Sir, the other thing I wanted to ask you that in terms of formulation, like say the Ronfen and the other 3-in-1 combination also that we've got. Sir, what is our right to win versus, let's say, another competitor that can come and even try to, you know, because it is a formulation patent, someone else also can try and come and, you know, make the same similar formulation. What do you think is our right to win when it comes to, you know, these formulation patents, not the technical 996? It is impossible to come with the same line. Of course, this is patent. Patent is not like anybody can come with a different kind of percentage or something because we have blocked the range because in the patent we have blocked the range from the, you know, 1 AI is from the, you can say 18% that we are launching. We have blocked the range from 5% to 50%. If anybody will come above that, it will not work out. It will not work out. The product will not work out. For that we are very much sure. Our people in the IP lead also very, you know, we have strong team. There is no chance to come anybody like this way, what you are talking about. Okay. Sir, just this last question on the 9(3) for Pyroxasulfone that we have got. Sir, the exclusivity will be for another two, three years, right, even if UPL has got the same 9(3)? Three year. Pardon, three year. What would be the exclusivity period? No, no. There is no exclusivity for us or for anybody. Okay. There is none. Sir, you said previously on the call that you have some 9-10 products in the 9(3) registration. Yeah. Approximately, sir, what would be the addressable market size if you can just give a ballpark figure for combine all the 9(3) products that we plan to launch and we've already launched. No, no. You are talking about nine months or in the future you are talking about? In the future, sir. In the future, definitely. Definitely right now 60%, we are doing in the FY 2024, FY25. Our whole plan with our new combination or rather our novel, you know, you can say product which we are doing, that has, that is our plan. Maybe, we will achieve not only 9(3) because we don't calculate as only 9(3) because we are including our patented product also which will come year on year. Each year you will see 10%-20% it will be increased. Like 60% we are doing as of now. Next year you will see it will be 75%. Our main target is to focusing that product only. Definitely, in a 1 day you will see it will be 90% also. You are saying the pro-in the product mix, the percentage of legacy products will go down and there'll be more focus on combination molecules and 9(3) and 9(4), right? The same we have done in last three year and same we will continue with the same. Yeah. Okay, sir. Okay. Thank you so much and all the best for the future. Okay, Mr. Shah. Thank you. Thank you. Ladies and gentlemen, that was our last question. I now hand the conference over to the management for the closing comments. Thank you all for joining our quarter, this quarter conference. That's all. Thank you. Thank you. Thank you, everyone. Thank you. Thank you, all. Thank you. Ladies and gentlemen, on behalf of Best Agrolife Limited, that concludes this conference call. We thank you for joining us. You may now disconnect your lines. Thank you.