Ladies and gentlemen, good day and welcome to the Ami Organics Q2 FY2023 Results Conference Call hosted by Axis Capital Limited. As a reminder, all participant lines will be in 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. Mehul Sheth. Thank you, and over to you. Yeah, thanks, Operator, and good afternoon, everyone. On behalf of Axis Capital, I welcome you all for Ami Organics Q2 FY2023 Earnings Call. Today, from the management side, we have Mr. Naresh Patel, Chairman and Managing Director, and Mr. Bhavin Shah, who is a CFO at Ami Organics. I now hand over the call to Mr. Bhavin Shah for his opening remarks. Thank you, and over to you, sir. Thank you, Mehul. Good evening, everyone. We are pleased to welcome you all to our Earnings Call for Q2 FY2023. Please note that a copy of our disclosure is available on the investor section of our website, as well as on the stock exchanges. Please do note that 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. With that, I would like to hand over the floor to our Chairman and MD, Mr. Naresh Patel, for his opening statement. Over to you, sir. Thank you, Bhavin. Good evening, everyone. Welcome to our Q2 FY2023 Earnings Conference Call. I hope you all are doing well and had a good break during the festive with your families. Before I discuss the business updates with you, I would like to discuss global trends and their impact on Ami. Global geopolitical issues continue to have an impact on the economic stability and sustainability of various industries in nations across the world. Europe has been one of the most affected regions, with several industries running at low capacities or shifting production to other countries like India. For Ami Organics, the majority of our business goes into pharmaceutical production, where energy requirements are relatively lower compared to other industries. Also, the demand for final products in the pharma industry remains stable due to its nature of being an essential product for human health. Therefore, we are relatively less affected by the energy crisis that has engulfed Europe. On a brighter side, I am able to see that the demand in the pharma industry is recovering, and the industry is expected to see a strong revival in the second half of FY2023. Coming to business updates, our revenue for the quarter was INR 147 crore, which is a growth of 20.2% on a year-on-year basis. In the previous earnings call, I mentioned that our business is structured in a way that our Q1 is always the smallest and with sequential growth every quarter. Q4 ends up being the largest. This is visible in this quarter as we have delivered a robust 12.2% sequential growth. I am confident that we will continue to see more than 10% sequential growth in Q3 and Q4. This will also result in our second half of FY2023 being 55%-60% of the total annual business. Our EBITDA margins for the quarter are at 19.1%, an improvement of 107 basis points on a sequential basis. I will let Bhavin discuss the financials in detail. The advanced pharmaceutical intermediates business showed strong growth of 25%, which was given by both export as well as domestic markets. The EBITDA margin for the pharma business has improved to 21.5%. During the quarter, we continue our work of developing big existing products using flow technology, and I'm happy to say that we will commercialize a couple of more products on flow technology in the second half of FY2023. So with four big products running on flow technology, 5%-7% of our reactor capacity will be freed up. The two new import substitute products have received trial orders from clients, and we are confident of commercializing these products in the second half of FY2023. The peak revenue potential from both these products combined is between INR 150-200 crore. On the specialty chemical side, Q2 FY2023 was a muted quarter with EBITDA margins remaining steady on a sequential basis. Some of our cost improvement projects at the Jhagadia site are in final stages, and we should see the improvement in the margin of this business in the second half of FY2023. I'm delighted to announce that we have successfully developed methyl salicylate using flow technology. We have received flow reactors for these, which have been successfully set up in our Jhagadia plant. We expect to commercialize the product from Q3 onward. As you all know, methyl salicylate is close to 30% of our specialty chemicals business and 5% of our total revenue. This shift in manufacturing technology has decreased overall production time considerably, expanded capacity by threefold, and resulted in a cost saving of around 5%-7%. The cost saving and higher volume will improve our competitive edge in the market, thereby driving overall growth of the product. We expect methyl salicylate to lead the growth of the specialty chemicals business in the upcoming quarter. Coming to the update in electrolyte additives, we are expecting a commercial trial order of a couple of metric tons within a couple of weeks. This gives us enough confidence of commercializing the product before the end of the current financial year. We have been receiving good response and inquiries from clients across the world, which gives us enough confidence to state that this will become a huge business for us in the coming years. Overall, I remain optimistic about the growth of our business in the coming quarters and years, as with the various growth engines that we were putting in place are now ready to fire. We continue to maintain our guidance of 25% growth in FY2023. Now, I request our CFO, Mr. Bhavin Shah, to discuss the financials. Over to you, Bhavin. Thank you, Naresh bhai. Good evening, everyone. I would like to briefly touch upon the key performance highlights for the quarter ended 30th September 2022, and then we will open the floor for questions and answers. I will start with the quarterly update. Revenue from operations for the quarter was at INR 147 crore, up 20.2% as compared to INR 122 crore in Q2 FY2022. The gross profit for the quarter was at INR 70.6 crore, up 6.8% as compared to INR 66.1 crore in Q2 FY2022. Sequentially, gross profit improved by 10.4%. The gross margin for the quarter was 48%. Employee benefits expense was higher on a sequential as well as on a YoY basis due to variable pay during the quarter and the annual increment that was rolled out in Q1. We expect this to normalize in the second half of FY2023. EBITDA for the quarter was at INR 28.1 crore, up 2.8% as compared to INR 27.4 crore in Q2 FY2022. On a sequential basis, EBITDA for the quarter increased by 18.8%, which is a result of various cost optimization programs to keep the operating cost low as well as lower freight charges. EBITDA margins for the quarter were at 19.1% compared to 22.4% in Q2 FY2022 and 18.1% in Q1 FY2023. Improved EBITDA margin was on the back of lower operating cost. Freight for the quarter was at INR 19 crore, up 9% on a YoY basis and 28.1% on a sequential basis. The freight margins for the quarter were at 13% as compared to 14.3% in Q2 FY2022 and 11.3% in Q1 FY2023. Overall, you can see the improvement in margins on a sequential basis, and we believe we will continue to see the improvement in the coming quarters as well. Export for the quarter was at 58%, whereas domestic business was at 42%. As Nareshbhai mentioned, looking at the demand scenario, we maintained our guidance of 25% growth for FY2023. With this, I conclude my remarks and request the Moderator to open the floor for questions and answers session. Thank you. Thank you very much. We will now begin the question- and- answer session. Anyone who wishes to ask a question may press star and one on their 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. We have our first question from the line of Sudarshan Padmanabhan from JM Financial PMS. Please go ahead. Yeah, Sudarshan sir. Sir, congrats on a good set of numbers. So my question is, if I'm looking at the gross margin specifically, quarter-on-quarter, there has been a decline. Now, given that the mix has been relatively better, more of pharma intermediates here, did we have any kind of one-offs or high-cost inventory in this quarter, and how do we see the second half? So, Padmanabhan, if you see our gross margin is in line with our average. So 48% is the average gross margin we have over the last six or eigh quarters. For the current quarter, it is 0.8% lower than last quarter. We do have some inventory which we have from the last two quarters that we have procured. So going forward, this will normalize, but it will remain between 48%-50%. That is our normalized gross margin level. Sure, sir. And sir, I mean, on the chemicals side, I mean, just talking about this methyl salicylate, I mean, just wanted to know, with this flow chemistry starting, say, in the second half, what is the kind of impact that one should be looking at, say, in the second half and for FY2024? And what is the target that we have for you mentioned other two products as well? So in the margins perspective, I mean, you did mention that the chemical business is flatterish. So how do we see the chemical business margins trajectory in the second half and for the next year? See, basically, in our previous call, we said that our main aim is to consolidate the specialty chemicals acquisitions in line with our existing business. And that is where we started working on several implementations, which include the technology upgradation and as well as the more efficient production, operational, everything, even energy efficiency. Everything has to be implemented so that margin and our share in the business in the specialty chemical will increase. And in that line only, we are working continuously. And that is also one of the reasons that one of the products which is methyl salicylate, which is contributing 30% of the revenue of this specialty chemical, is a sizable amount of revenue. And with this 30% also, and in worldwide demand, we are not contributing even 2% of that. So that is where a huge volume is available to grow. So that's why we put up flow reactors where we can expand our current capacity of 200 metric tons to 600 metric tons per month. That can drive our future growth in terms of specialty. Not only this product, but other specialty chemicals products like parabens and other any sources and all, that also we are working on simultaneously. One by one, we are improving each product. Our target is to bring it to 2.5 times of the FY2021 of the revenue of specialty chemicals of Gujarat Organics and also improve the margin from single digit to double digit, up to near to our normal margin of pharma. Sure, sir. And one final question before I join. I mean, I understand that our capacity utilization is still not at full throttle. So what is the capacity utilization at this point of time? And you did mention that as the growth comes in, we will also be seeing higher margins. So how do we see the margin trajectory, say, in FY2024 and FY2025? Because I would believe that as the growth comes in, you would also see operating leverage benefit on both your businesses. See, our first target is to reach our margin to the FY2021, which is almost the best margin year of all 14 years of time. So first target is to reach that level. And then from then onward, every year, we are targeting to improve to 1%-2% basis every year in the margin, go up to the 25%-27%. But that is our aim. And on that area only, we are working on improving not only in one sector, but all areas, including energy, raw material, operational efficiency, capacity utilization, converting batch processes to flow. That way, we can improve our operating efficiency as well as we can release the capacity for our upcoming new molecule up for FY2022, 2023, 2024. And later on, it will be supported by our unit two, which will be coming next year. It will be ready by December 2023. So then that will be supporting further new product inclusion into the system. If I hear correctly, around 27% is where we can actually potentially go at peak margin. The first target is to reach the FY2021. And then onwards, our focus is to go up every year around 1%-2% basis in the improvement on that. Sure, sir. Thanks a lot, understood. Thank you. We have a next question from the line of Tarun Shetty. Please go ahead. Yeah. Good evening, everyone, and thank you for the opportunity. My first question is on the vinylene carbonate. We have heard that the prices have significantly dropped over the last six months. Any clarity on this aspect would be helpful. It's a very nice question. I was expecting this. Let me tell you one thing. vinylene carbonate, the price has gone up based on the raw material prices as well as the demand. The raw materials are very, very, I can say, cheap in terms of value. Technology is very important in this product. So Ami Organics has developed a flow chemistry in that. We are successfully running the continuous reaction of that. We reduce our cost sizably. Now we are ready to compete the China price. That is the reason why we are expecting first order in this month, maybe. Okay, okay. So my next one would be, so given that you have taken price hikes in the previous quarter and given that the expectation is that the baseline raw material prices should start softening or have softened a bit, so would you need to pass on the same to your customers? And if yes, then when do you expect the same to happen? See, normally, I always say that on quarterly lagging, we are able to pass on any incremental price of raw material to the customer. And that is continuously going on. Apart from that, we are holding some stocks for the long-term contract, which now the softening of the price of the raw material of that and the old stock of the raw material will be normalized in this quarter. Or maybe end of this quarter, it will be completely normalized in that stock. And from that onwards, it will go upside. Okay. So basically, you do not see any issue, at least for the near terms, because of your long-term contract? Yeah. But in long-term contract, every quarter, we are passing the cost incremental to them. So it is not impacting very largely on our pricing. Okay. Yeah. Lastly, could you help me with the contribution of your key products like trazodone and entacapone? Trazodone is 18% this half. For this half, and entacapone is 8%. Trazodone is 18% and entacapone is 8% for this quarter? Yeah. For six months. Six months. For six months. Okay. As we run the commentary, and now the apixaban, we told that the growth hours for this year, and it is showing that this half, apixaban has contributed 30% of the revenue, 13% of the revenue. 13% of your revenue. And this is about total revenue and not Spec-chem? Half year. Half year. Okay. 13% of total revenue and not Spec-chem. This is including Spec-chem, or it's free? It is 13% of total revenue. Okay. Okay. Okay. I have no questions. Thank you. Thank you. A reminder to participants to press star and one to ask a question. We have a next question from the line of Padma Raju Mathi from SBI Life Insurance. Please go ahead. Yeah. Thanks for taking my question. My first question is, if I see this presentation, this particular quarter, we have given only two segments. Is it fair to assume that the other segment is combined with advanced intermediates? Yes. Okay. Okay. So sir, my second question is with respect to specialty chemicals. So I mean, I have understood the technology improvements and the change in power source and all. But if I see the revenue from this particular segment over the last three quarters, I mean, it has been operating at the same 40% utilization levels only. So my question is, are we facing any sort of challenges in scaling up these utilization levels apart from the technology improvements aspect that you mentioned? No, there is no challenge in that because it's a multipurpose manufacturing facility. So we try to use in such a way that we can have a product mix in such a way that we will be not utilizing maximum, but we conservatively use. And that's why we have remained capacity, which can be available to any spot demand coming in that. So that's how we are planning in our production planning. How do you see these utilization levels for the full year from this particular? See, our maximum, we can go up to 85% of total utilization of capacity. In unit one, this year, it may go up to 65%-70% is the max. Whereas in Jhagadia, which is running at 40%, then it has to go to 60%. But after installing this methyl salicylate plant, now it will remain at 45%. With the flow reactor, it will give us the leverage of reduction in 5%-7% in that. The 45% you mentioned is for the full year for FY2023? Yeah. Of Jhagadia plant. Okay. And next, can you, every quarter, you give the breakup between pharma and specialty margins. Can you specify for this particular quarter as well? Yeah. Bhavin can give you that. So specialty chemical is flattest 10.7%, and pharma is at 21%. Okay. So lastly, just on the, I mean, you have given the guidance for the full year in terms of what is the kind of growth you are expecting. Any sense on the margins as well? Yeah. Margin, we always say that every quarter, we are trying to improve 1% or 2% basis. Also, you see that Q1 against Q2, we have improved by 1%. That will be continuously going up. Okay. Okay, sir. Thank you. Thank you. We have a next question from the line of Hardik Shah from Taurus Mutual Fund. Please go ahead. Hello, sir. Thank you for giving me the opportunity. Congratulations for a fantastic set of numbers. Sir, it is very heartening to see that despite the drop in our gross margin, we have been able to improve our EBITDA margin. Sir, my question is that during the quarter, there was a report that there is some new technology upgradation in the lithium-ion batteries. Vinylene carbonate, which we have developed, will not be required for the new-age batteries. The patent document mentions that vinylene carbonate will continue to be an important part for the same. If you could give us some bit of clarity for the same, it would be very helpful. See, that report, I had read it. And in fact, after that, I had sent that patent as well. So see, any lithium-ion battery, whether it is lithium silicon or lithium iron phosphate or any lithium nickel molybdenum, whenever there is a lithium, an electrolyte solution is required. And in electrolyte solution, there is a vinylene carbonate as a polymer is required for that to cover the cathode of lithium. So it's a wrongly interpreted statement issued by someone who had not thoroughly studied that. Any lithium battery, whenever it is used, vinylene carbonate or fluoroethylene carbonate, either one of them is mandatory based on the geography of where it's going to be application. Understood, sir. Understood. Perfect, sir. And sir, my second question is with respect to the specialty chemical business. Sir, while answering the previous participants, you had mentioned that we want to take our revenue to, say, 2-2.5 times and take our margin to, say, in line with the pharma intermediate margin. So can we work with a number, say, of INR 180-200 crore+ top line with 17%-18%+ EBITDA margin for next year? Yeah. Yeah. This is our guideline, is our target. See, the 21, it was INR 90 crore of the revenue of Gujarat Organics. So we are targeting to make it 2.5x in the next couple of years. Including the margin has to be 2%-3% basis lower than the margin of our pharma. Perfect, sir. Perfect. Thank you so much, and all the best. Thank you. Thank you. We have a next question from the line of Jay Shah from Capital PMS. Please go ahead. Hello? Can you hear me there? Yes, sir. Congratulations, sir, on a great set of numbers and sticking by our guidance and giving quarterly performance as you've been guiding. Sir, my question is a lot on the broader front that since we have more than 50% of the revenues coming from exports, are you seeing a shift in demand from Europe even now that now they might be asking even for KSMs, not only APIs because of their energy problems? Or do you see any chances for more wallet share increase in a particular customer because of this Europe plus one that is happening? And second question is, if you can throw some light on because API sector is, again, in much demand because of the global geopolitical problems, what therapies do you think are more in demand and hence which of our products might be doing much better going forward? So I will divide your question in two parts. First part is that whether European client will move from KSM or maybe API. See, you know the pharma industry is running with a very regulated documentation point of view. So like in a general chemical industry like BASF and all, they can be changed from one location to another because they don't require any regulations in terms of compliances as well as approvals. Whereas pharma is run with the complete documentation. Even the site and location is also important for any manufacturing of any chemical or API for pharma. So in that sense, it is not immediately possible for any company or any country to shift complete production from one region to another region. So that will be very protected for us in terms of the demand. Apart from that, that might be possible that some pharmaceutical API manufacturing company may ask us from starting material to KSM because in that sense, they can save some step not manufacturing in their location. And by that way, they can control their cost by energy and all. So that is for one. We are already receiving this kind of opportunity, and we are working on that. So that is always available. And we are ready for that kind of inquiries as we have always developed up to N-1, all intermediates of our API. Second question is in terms of therapeutic demand. We are doing all chronic kind of therapeutic area where it's a daily dosage kind of things. So here, the demand is incremental or decremental is not possible because the patient who had prescribed for this kind of medicine has to have that. So for us, it's like a regular demand is there. So we are not seeing any kind of any escalation or something like that. It's a robust growth in our therapeutic area. Okay. Okay. Thank you. Sir, second question is, basically, in this vinylene carbonate capacity that we have, how fungible is it or how flexible is our process design or plant design that we can as you said to the previous participant, that instead of vinylene, we have to use chlorine carbonate? Can we do that? Do we have chemistry expertise in chlorination also? Yeah. See, basically, vinylene carbonate and fluoroethylene carbonate, both we had made. And we have samples in various customers. It's distributed. And it's a longer process in terms of qualification because it's not only the compliance. Also safety is involved in that. And we are lucky that in one year's time, we could be able to crack one customer with the commercial trial demand, which they use to make some cells. And then they will go for the use trial of that cells into the automobile. But this is how it works. And in chlorination, there are two types of chlorination. One is direct chlorination, which is done by SRF, Navin Fluorine, Tanfac kind of companies. Whereas some chlorinations, we do with the potassium fluoride. And that can be done with so many companies can do it. And we are also already doing in pharma. Now we have a capability to do the same thing in a large scale as well. Okay. Okay, sir. Just one last question, sir. Sir, can you throw some light on that agrochemical molecule that we've been working on? Is it towards the crop protection side or what is the market side? What is the nature of the molecule? Something, if you can share with us? The two molecules out of that one, which is what we call the commercial order, is related to that only. That is using a fungicide API. Okay. So it's an active ingredient, basically? No, no, no. We are making chemical. We don't make any active ingredient. Our chemical used to make that active ingredient. Okay. Okay. Thank you so much, sir. And all the best for the future quarters. Thank you. Thank you. Ladies and gentlemen, to ask a question, please press star and one on your phone now. We have a next question from the line of Suruchi Parekh from NX Wealth Management. Please go ahead. Yeah. Thank you. Sir, last quarter, when we get to know that you have developed two molecules of input substitutes, which is related to antidiabetic and cardiovascular, and that has been sent to clients for testing and trial. So any update and business opportunity there? So these two molecules were already commercialized in Q3 of 2021. And Q4 is a larger volume already supplying. And after that, we announced three more molecules. In fact, we are in a qualification stage. And out of the two already qualified, one is in agro and one is in pharma. And it is in anti-inflammatory segment and pharma. And that we got an order from Europe and Israel. And this agrochemical, which we got an order from India. How big that order would be, sir? These are all qualification validation batches are there. So in pharma, we got around 5 tons. And in agro, we got around it's very, very validation batches, around 500 kilos. Okay. Then what is the bifurcation between the specialty chemical business and this pharma business, which is under GOL, revenue bifurcation out of this INR 180 crore? See, for GOL, everything comes under a specialty chemical. [Foreign language] Pharma kilo specialty chemical? Out of our total revenue, 85% is pharma, and specialty is 15%. Okay. So last year, by Q3, I think GOL was doing some 14% EBITDA. And this quarter, you said something around 10.7%. So what is the outlook we see this GOL facility can reach near to the EBITDA level of AMI? It will be in a longer term, it will be 2%-3% basis lower than the pharma business. Okay. And sir, I mean including electrolyte and vinylene carbonate and whatever the new product we are developing along with this ethyl silicate, so what is the outlook we can see? Right now, we are doing it around INR 140 crore-INR 150 crore quarterly rate. You said around INR 180 crore-INR 200 crore quarterly run rate can be achieved. What is we can say by 2025-2026, we can surpass this INR 1,000 crore top line number, something like a broader outlook? Yes. It's possible if we see we will be commercialized. It can be possible. But we are not guiding any numbers for you because normally, we say that 25% CAGR is our growth rate. That is based on our current birds in our hand rather than birds in our branches. So VCB and all are still under our maturity level. We are always conservative in our statement. That is how we are saying. One, it will be electrolyte will be commercialized. The numbers and everything will be changed very dynamically. 25% growth, you said only for 2023, not for 2024 onwards? No. 2023 also, 2024 also, 2025 also. So, 25% CAGR growth outlook we are giving it, correct? Yeah, yeah. 23-25 for the longer term is always there because it's our last 12 years. History is like this. And our all new molecules are which we had developed and is coming every year. There are four, five molecules bringing the new revenue growth as well as the old revenue. All molecules are going at 8%-10% as well. So it's accumulatively, we are getting good revenue growth. Okay. And sir, how much dolutegravir contributed during this quarter? Dolutegravir in this quarter, this half is 4% and 3% in this quarter. Okay. So which were the three molecules which contributed highest? Apixaban, trazodone, and entacapone. And entacapone? This is the beauty that we are not dependent on one customer, one product. That is our policy. Correct. So this INR 190 crore CapEx which we announced last year in April or something. So sir, what is the progress on this? It's going on a line. It's per our planning and bar chart. It is going in the same way. Right now, we are in civil construction as well as in the phase of ordering the equipment. It is perfectly as per planning is going on. But when we can start the commercial production from those new capacities? The facility will be ready by December 2023. Then we start validations and qualification of the facility. By FY 2025, right, or 2025, it starts giving the revenue. What would be the assessment of this new CapEx? 2x, 2, 2x, 2.5x, we can break 3, 3.5 because in these, we are also putting some; it's completely DCS. And we are putting several continuous reactions as well. Sir, two things to understand because our capacity utilization right now is on the lower side. Ankleshwar Jhagadia is doing 40%-45%. Sachin might be doing around 60%-65%. So this capacity optimum level, what revenue we can achieve? Or whether this will be capacity optimally utilized in maybe next 15-18 months? Surat facility in the next one and half years, it will be fully utilized, 85%, 85%, 85%. Whereas Jhagadia will be in next two years. And meanwhile, we have additional capacity come from Ankleshwar. So we are proactively investing in a CapEx considering our growth plan and our projections and our planning. And we normally have the capacity available for our future. Okay. Last question, sir. How much can be the size of the electrolyte business in three years, five years in revenue terms? It can contribute INR 30 crore, INR 100 crore, or bigger than that? The number I will not say, but it will be definitely much bigger. If everything goes well, it will be much bigger than our current existing portfolio. Okay. Thanks a lot, sir. Thanks a lot. Very much. Thank you. Thank you. Before we take the next question, I will request participants to press star and one to ask a question. We have a next question from the line of Tarun Shetty. Please go ahead. Yes. Thank you for this. So. You're sounding very low, sir. Can you hear me? Yes. Okay. So my question is on the import substitute products that you have launched in the past few quarters. How is the demand scenario for these? And have you gained market share in the recent months? Yeah. The pharma is moving slow in terms of qualification and substituting from existing vendors. So it is growing really well. We could be able to reach around 30%-35% of the right now the demand. And it will grow gradually to in next FY 2024, it will be 100% reached to that level. Okay. Currently, the contribution would be less than 10%? Yeah. Yeah. Okay. Okay. Coming to your books, so the inventory level that we see has gone sharply up. So in the coming months, do you see this normalizing or you will have to take some debt for short-term working capital? So, Tarun, let me answer this. Our inventory level is a little higher. In coming quarters, in Q3 and Q4, we can definitely see that this would normalize. And this will come to a normal level. We are intending to bring it down to 90 days kind of thing. Currently, we have positive cash from operation and that we are going to maintain. And we don't foresee any debt to be raised for our working capital purpose. We have INR 52 crore available as a bank balance and investment currently with us. Okay. But I believe there's a substantial portion of CapEx also that is becoming this year. So okay. Could you? Yeah. So Tarun ji, these are all because of the demand and everything. We are positioning ourselves in such a way that, considering the projections and planning coming from the customer. And to encash that, we are building our positioning in that. So it will be liquidated in this quarter and beginning of the next quarter. Okay. My final question will be on the CapEx. Could you reaffirm your guidance for this year as well as next year? Sorry? Your voice is not coming. Sorry. Can you repeat the question, sir? Yeah. Just wanted to know the CapEx number for FY 2023 and FY 2024, 2025 if you can? Yeah. FY 2023, 2024, we had already guided that INR 190 crore for this new facility as well as maintenance CapEx of INR 30 crore, which is the guidance right now. Okay. Okay. Thank you for that, sir. That's all from my side. Thank you. We have a next question from the line of Mehul Sheth from Axis Capital Limited. Please go ahead. Yes. Thank you. Thank you for the opportunity. So first, I have two, three questions. First, Ankleshwar part, out of this INR 190 crore, how much spend you have done so far? Till date, how much you have spent out of this INR 190 crore? It is still in the initial phase of civil construction as well as order placing. Order is going on. So it's some advances in the order. So it will be somewhere around INR 10 crore-INR 15 crore we have paid till now. Okay. And it will be in phase, some part will be in H2, and maximum will come in FY 2024? Yeah. Yeah. It will be split in two. Yes. Yes. Yes. Sir, one scenario or global scenario-wise, I want to ask something. What was the impact on the volume as well as on the price for Ami Organics due to this increasing raw material as well as there is a supply chain disruption? So what was the impact on Ami Organics in terms of volume as well as in terms of pricing? And second part of this question is also because of this similar issue, there must be some company or some of your competition must have moved out of the market. So that kind of opportunity are you getting from the market or you are getting benefited because of exit of some existing players? See, basically, whatever the product we make in a pharma, we are positioning pole positioning in that. And we are contributing around 80% of the world demand in that data API. So here, we are already at a positioning ourselves at a higher level. Yes, there might be shifting of 2%-5% from other competitor to us. It may be possible. So that will be sooner or later, it will become out of that. Whereas the volume is increasing every quarter, it means that shifting is already happening. So that will be in a positive manner at Ami Organics. In terms of valuation, the sales price is almost we derive based on our cost and the incremental margin, whatever the profit and all, which we pass on to them. Based on that, the value is going on. One clarification is, Bhavin sir mentioned that you had some higher cost inventory in this particular quarter. So considering this Q3 gross margin, will be we can say much on the higher end of around, say, 49%-50% range from current 48%? So there is room for improving 100 or 200 basis points from here. We will definitely see improvement in every quarter. So coming Q3 and Q4, we will definitely see improvement on a gross margin. Sir, one last question on launch run rate for you, specifically in the advanced intermediate side. So what are your visibility for the product which have recently expired, has achieved their patent expiry year or will be expiring, say, next couple of quarters' time? Some product like sitagliptin which has recently expired, then dapagliflozin on diabetic side. So do you have presence in such molecules? Yeah. We are present in sitagliptin. We are present in apixaban. We are present in vildagliptin as well. So these are all molecules contributing. It is growing slowly, slowly in the demand. What will be a launch new product introduction rendered for next, say, two, three years' time frame? Every year, what could be the run rate? We have more than 400 products waiting to come into the basket. These all 400 products is with the customer is already invoiced. It is expired up to 2037. We have a long visibility of our product pipeline. This is also secure with the customer base as well. Every year, there are four, five molecules coming in the basket. This is how our basket from every year is currently, it is contributing around 60 molecules which are contributing total revenue. Out of that, 30 molecules are contributing around 60% of the world revenue. This is how it is widely spreaded. Visibility is also long so that we can proudly say that we have a sustainable growth in terms of our revenue. Thank you. I joined back the queue now. Thank you, sir. Thank you. We have a next question from the line of Hardik Shah from Taurus Mutual Fund. Please go ahead. Hi, sir. Thank you for the opportunity. Sir, I have a small follow-up on the question of the previous participant. Sir, I understand that we would not require any debt for working capital. But for the CapEx, sir, will it be funded by debt partly? Yes. If needed, we will go for the debt for the CapEx. That was missing answer. Yes. Understood, sir. We have an IPO, general corporate purpose fund is available. Also internally tools are also there. But if needed, we will go for the small debt raised in term kind of thing. Correct, sir. Sir, can you share what will be our mix from Europe, sir? Mix from Europe? Yes, sir. You mean to say contribution of the Europe business? Yes. Yes. Yes, sir. Yeah. Our total export majorly going to Europe. So it is somewhere around total 52% of export, we have around 70% or 80%. How much? 70. 70%? 70% is coming from Europe. Understood, sir. In the toughest quarter, we were able to grow the business. There is no challenge for our business. Is that understanding correct, sir? Yes. This quarter has performed well in that this quarter, so many problems in Europe even though we are contributing a good amount of revenue from Europe. So I think it's not we are not seeing any in the near future, any threat of that. We are having a success. Sizable orders are in hand. If something will happen, we will proactively come and inform to our investors. Perfect, sir. Understood, sir. Thank you so much. That is all from my side. Thank you. We have a next question from the line of Prateek Chaudhary from Saamarthya Capital. Please go ahead, sir. Sir, this electrolyte product, in your understanding, what is the advantage that China particularly has as the presentation mentions that all seven or eight companies that make this product globally are all based out of China? Do they have any specific advantage in terms of, say, is the product very power-intensive or does it require a lot of incentives from the government? Or is it technologically difficult to produce? I mean, why have no other company in the world been able to do it other than these seven, eight Chinese companies in your understanding? Yeah. So initially, when these industries are putting up because of the China advantage and all the big even the big industries based in Europe and Korea, Japan, like LG and all, they have also put up Samsung. They have also put up the plant in China. And this is the reason why this is highly concentrated in China. But now the demand in the rest of the world market is now more derisking themselves from China. And that is the reason why the big window opened for the rest of the world. And this is where we are the first one to get in this window. And that is the reason why the faster approval for us is getting in this requirement. So say, for example, big company based in Korea, they have a manufacturing site in China as well as in Europe as well as. So they now want to have material from us not only in China but in Europe because from there, Europe, they are targeting to U.S. So this is a complex, but definitely, they want to derisk themselves depending on China. What sort of, although it's very preliminary to ask this question, but what sort of margins do you foresee in a product like this? When there's a volume in terms of 100,000 metric ton kind of things you are talking, the margin will be similarly in that level as well. Any rough estimate on gross margins? Is it similar to what we do or better or worse? Normally, our target is to make the similar kind of margin where we are making in other products. So that will be our target. And that will be the guideline right now. If I remember correctly, the size of this product globally is upwards of $1 billion. Is that correct or am I wrong? It is growing every year. So it is incremental. What is the current size, global size of this product? As per the report, it is INR 1.2 billion. But as per the market survey, what we do personally is completely different. But we can't claim that because we are not authorized for that. Okay. Okay, sir. Thank you. Thank you. We have a next question from the line of Rohan Kamath from Finterest Capital. Please go ahead. Hello, sir. I want just one question for a little bit of number. I want to know, sir, if I will forget electrolyte salts, is Tatva Chintan also making the electrolyte salts? Sir, I'm extremely sorry, but your voice is echoing. So I could not be able to understand the question. Mr. Kamath, can you use your handset, please? Hi. Yeah. Yeah. I'm audible now? Yeah. Sir, actually, I want to know about electrolyte salts, sir. We are making Tatva Chintan also in that segment. So please, can you elaborate it? No. First of all, let me tell you, Mr. Kamath, we are not making electrolyte salt. Electrolyte salt is manufactured by GFL. Neogen is trying to do that. We are making the electrolyte additive, which is one of the parts of the electrolyte solution. Okay. Okay. Okay. Thank you, sir. GFL and Neogen. GFL already ordered us. So they are our customers. Okay. Okay. Thank you. Thank you for the good set of numbers, sir. Thank you. We have a next question from the line of Suruchi Parekh from NX Wealth Management. Please go ahead. Hello, sir. We are not audible. Can you use the handset, please? Yes. Suruchi? Hello. Hello. Hello. Am I audible? Yes. Please go ahead. Sir, in your PPT, you have shown this chemistry of chlorination and bromination. Any future plan to go into this chemistry? We are already doing this. So there is no future plan on that. We do all kind of chemistry. We do all kind of chemistry. As in pharma, we are not known for any specific chemistry because we are doing most of the which is more viable, more addressable chemistry. This is all we do in a commercial scale. Okay. Okay. That's good. Thank you. We have a next question from the line of Prateek Chaudhary from Saamarthya Capital. Please go ahead. Sir, on this electrolyte, if you could give some historical perspective on when did you how did you identify this opportunity? Are there any parallels technological or chemistry that you handle? Are there any similarity or parallels with what you do in your existing business? And yeah. So the question was asked by a previous caller. That answer will be coming this as well. So this opportunity is brought by one of the international partners based in Israel. And they bring us this opportunity considering our capability in the reaction handling. And we got this inquiry or opportunity in 2021, sorry, 2022. And then we developed because this chemistry, we're already doing commercially. And that's how we started making this in a lab and then in a pilot. And so I can say one and a one year, one point two years of history of this molecule. Is it some guarded technology? Yeah. Or is it any other Indian chemical company? It will not be very difficult for them to crack this. Is it like? No. It's a guarded technology. Okay. Okay, sir. Thank you. Thank you. As a note for the questions, I would now like to hand the conference over to Mr. Naresh Patel for closing comments. Over to you, sir. Thank you very much, sir. Thank you. Thank you, Axis team, for hosting our conference call. Thank you, everyone, for your patience. We hope we have been able to answer most of your queries. If we have missed out on any of your questions, please kindly reach out to our IR advisor, EY. We will get back to you offline. Thank you very much. Have a good evening. Have a good weekend. Thank you, sir. On behalf of Axis Capital Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.