Ladies and gentlemen, good day, and welcome to Akums Drugs and Pharmaceuticals Limited Q1 FY 2025 earnings conference call, hosted by Ambit Capital. 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. If you need assistance during the conference call, please signal an operator by pressing star then zero on a touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Prashant Nair from Ambit Capital. Thank you, and over to you, sir. Thank you. Hello, everyone. On behalf of Ambit Capital, I welcome you to the 1Q FY 2025 earnings call of Akums Drugs and Pharmaceuticals Limited. We have the Akums management team with us, represented by Mr. Sanjeev Jain, Managing Director, Mr. Sandeep Jain, Managing Director, Mr. Sumeet Sood, CFO, and Mr. Sahil Maheshwari, General Manager Strategy. I now hand over the call to management for opening remarks, following which we can get into a Q&A session. Over to management. Thank you, Prashant, for the introduction. Greetings, everyone, and welcome to our Q1 earnings call. I'm Sahil, General Manager for Strategy. Let me draw your attention to the fact that on this call, our discussion might include certain forward-looking statements, which are predictions or other estimates about future events. These estimates reflect management's current expectation of the future performance of the company. Please note that these estimates involve several risks and uncertainties that could cause our actual results to differ materially from what is expressed or implied. Akums does not undertake any obligation to publicly update any forward-looking statements, whether as a result of new confirmation, future events, or otherwise. I hope you have gone through the investor presentation and the results that were posted. I would like to request Sanjeev Jain, Managing Director of the company, to please take it forward. Thank you, Sahil Ji. Namaskar, everyone, and thanks for joining us on this call. Since it's our first conference call post-listing, I will take a few minutes to deep dive on how the business is structured and also articulate on key levers of our business. Akums is the largest India-focused pharmaceutical CDMO, with over 30% market share. This is the main business vertical of the group, contributing to over three-fourths of the group revenues. Our company caters to 1,500 plus clients and working with long-standing relationship with top pharmaceutical companies in India. We cater to both Indian and MNC pharma companies, with 26 out of top 50 in India pharma market being our partners. As a CDMO, we produce an extensive range of dosage forms, including tablets, capsules, liquid orals, vials, ampules, topical preparations, eye drops, dry powder injections, nasal sprays, among others. Since our inception in 2004, we have commercialized over 4,000 formulations across our 60+ dosage forms. We have 11 units operational for formulation CDMO business with capacity of over 49 billion units annually. Some of our manufacturing units have been accredited by various global regulatory agencies, including European GMP, WHO GMP, USFDA, NSF, etc. We also operate four R&D centers with over 400 scientists working over there, with around 2.6% of our revenues being invested in R&D. We are continuously building R&D capabilities and pipeline. In Q1 itself, we spent over INR 30 crores in R&D. We are leading players in India, holding 940+ DCGI, including 20 DCGI added in Q1 itself, and 920+ FSSAI approvals, showcasing our extensive strength in formulation development. We are passionately working towards strengthening our leadership position in CDMO space in India by expanding capacities to cater growing CDMO market, expanding capabilities to newer dosage forms, and developing robust portfolio of innovative formulations. In India, with our strategy, we recently started our new injectable facility with an annual capacity of around 36 crore units. The unit is currently undergoing customer audits and is expected to ramp up in the next 24 months. Also, we plan to expand in Jammu, augment our capacities. Our plan is to set up two units over there. One is multi-dosage facility and the another is a nutraceutical facility. We have recently launched into new dosage forms, including nasal sprays, gummies, and soon we'll start commercialization of lyophilized injections as well. In addition to our core CDMO business, we actively engage in marketing our own branded formulations in India and across global markets. Through Akumentis, we focus on therapy areas such as gynecology, cardiology, orthopedics, and pediatrics in India, with around 70% sales in chronic and subacute health- Sorry to interrupt you. Your voice is breaking. Sir, can you hear me? I'll continue forward. We have almost 70% plus sales in chronic and subchronic therapies. Leveraging our strong presence of over 1,500 employees, we market over 140 brands. Further, through Unosource, we focus on global markets and are present in 65 countries across multiple therapies, including CNS, anti-infectives, analgesics, gynecology, et cetera. We currently hold 700 plus dossiers globally. Given this, I'm happy to share that we received 75 additional approvals for the dossiers. We are actively expanding our team in various markets to capture global demand for quality generic products. We also engage in the marketing of trade generic products through distributors across India. Apart from these two business verticals, we are also present in API business, which contributes to over 5% of our revenues. We have an installed API manufacturing capacity of seven and 37 metric ton, and currently almost 85% of the sales comes from cefepime in APIs. We also manufacture APIs in respiratory, gastro, CNS, and anti-diabetic therapies. The business was recently started and is currently under ramp-up phase. We are strengthening our capabilities in R&D, manufacturing, and customer reach to scale up this business. Finally, at Akums, we're glad to introduce Mr. Amrut Medhekar, who has recently joined us as CDMO for CDMO operations. Mr. Medhekar brings with him almost 35 years of experience in pharma space. Now, let me hand it over to Mr. Sumit Sood, who is the key financial officer for Unosource. Thank you, Sahil. So here I'll take you through the group and the segment financials. If you see our results, the consolidated revenue for the group had increased from INR 970 crores to INR 1,019 crores during this quarter, the growth of almost 5.1%. Consolidated adjusted EBITDA grew from INR 108 crores to INR 121 crores, a movement from 11% to 12.7%. Consolidated adjusted PAT margins improved from INR 38 crores to INR 57 crores. There was a movement of 3.9% to 5.6%, on in the PAT. Consolidated gross margins also saw an improvement from INR 376 crores to INR 423 crores. There's. It moved from 38.8% to 41.5%. If we now look at the segment, so if I take the CDMO first, the CDMO grew from INR 740 crores to INR 782 crores, a growth of 5.6%, largely driven by volume growth of 14% compared to Q1 2024. It's pertinent to mention that the pharma industry had a modest volume growth during this period. The moderation of the revenue growth compared to the volumes was due to softening of the API prices. Our business is based on cost-plus margin. API prices impact our realization from our clients. If we look at the CDMO, EBITDA improved from, you know, INR 107 crores to INR 121 crores. There's a movement of 14.4% to 15.5%. The branded generic revenue reduced from INR 191 crores to INR 167 crores. This is a 12.5% reduction. Efforts to consolidate the trade generic business and continued performance of the branded and generic formulation business has led to the improvement of EBITDA from INR 7 crores to INR 17 crores, so the EBITDA moved from 3.9% to 10.2%. API revenue improved from INR 38 crores to INR 70 crores, a growth of almost 82%. Exports in the API division have increased from INR 3 crores to INR 9 crores in Q1 2025. API prices, though, had an impact on the margins of API business, wherein the COGS in percentage increased due to fall in revenue realization. The EBITDA moved from INR 9 crores to -INR 12 crores, from -INR 9 crores to -INR 12 crores. The EBITDA margins sort of improved from -23% to -17.4%. The company was able to reduce its debt by 205 crores, from 418 crores to 213 crores for Q1 2025. Cash flows from operations, you know, we were at 52 crores positive, and the free cash flows were 31 crores positive. The working capital improved from 1,084 crores to 881 crores in the first quarter for the group. We sort of raised a total of 203 crores in the working capital. So these are the financial results from our side. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question, press star and one on their touchtone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. Participants, to ask a question, you may press star and one. Ladies and gentlemen, to ask a question, you may press star and one on your touchtone phone. First question is from the line of Ashish Thakkar from JM Mutual Fund. Please go ahead. Yeah, thanks for the opportunity. So in the branded and generic formulation business, you did mention that, you know, you're trying to cut the losses and therefore, revenues are slower. How should we look at this business going forward? Is the loss-making activity over or there's still some time to go? Sure. So, let me address, Ashish. So, essentially, the branded and generic formulations are segmented further into three categories. One is the domestic branded segment, the second is the exports, and the third is the trade generic. Right, as we said, we are attaining losses, it is only to the trade generic segment, while both the branded domestic, the prescription branded domestic, as well as exports, both are positive. So in a way, the movement was earlier also positive, so overall in Q1, as Sumit earlier mentioned, was from 3.9%, we moved to 10.2%, right? And to your point, yes, we are in the process to further package up these losses into the trade generic segment. How should we look at this business growth? Because this, is there a trade-off between improving margins and the revenues? How should we look at it? Sure. So, as I said, the both branded businesses are our key businesses, and we both have EBITDA margins above the corporate margins, right? So both of them are healthy, growing at a healthy pace. And we continue to stay active on these two fronts. Regarding trade generics, we had the opportunity to consolidate the business. So that is where we are consolidating the revenue, and the trade-off is largely over. From now on, what we feel is the worst is in a way behind us, and we should see some further improvements in the overall margins for the branded and generic formulations. Good to hear. So my second question is on this, the Parabolic Drugs that, the losses were there last year. And, so how should we look at, the losses coming down? If whatever is strategic we were trying to do at their facilities, are all those activities over and, when can we see, you know, some conclusion coming from Parabolic? Sure. The Parabolic, which today sits in our subsidiary, Pure & Cure, which we acquired, so rightly so. If you really look at the trajectory of Parabolic in FY 2023, we had almost a 50% EBITDA loss in EBITDA loss. Then last year, we almost had INR 50+ crore EBITDA loss over a sale of roughly 200-odd crore. So largely the EBITDA is improving. If you really look at Q1 to Q1, last year, we had almost minus 50% of EBITDA loss, which now has improved to minus 17%. Right, while the progress in improvement is a bit slow in this quarter, essentially, which is driven by the prices softened for the cephalosporins. So as I mentioned earlier as well, cephalosporins is almost 55% of the business. So the prices fall. So while the realization fall, the COGS profit, it moved up. But in a way, the other aspects of the business, they stay intact. The growth is positive as I'm happy to share, even in the first quarter, we also exported to Spain from our Dera Bassi facility. Right, so we continue to add more countries, more accounts, more customer base, and see how can we expand this business going forward. So all the key growth levers are intact, while if you really look at it, the percent profitability also improved Q1 to Q1. And so before I get into with you, as far as the potential in Parabolic Drugs is concerned, can we go to thousand crore revenue mark, so which it used to do in earlier days? Is that kind of a potential still there in the Parabolic Drugs asset? So I think you have seen the financials of Parabolic, which is also a listed entity. So the assets are largely the same, right? So it is Dera Bassi, Lalru, and the third asset et cetera, and it used to do approximately 100 crore, that'd be that kind of revenues. But a pertinent point I wish to make over there is also it was approved by global authorities, right? So that the endeavor is there that we in coming years export to more countries. But as far as your question is concerned, obviously, that facility is currently having significant space for revenue expansion. And when do you see this facility becoming EBITDA neutral, are there any timelines? So at this point, I cannot put down a quarter wherein we would, but the results are increasing. As I was mentioning earlier, year on year, if you look for even quarter on quarter, the percent decline is coming down. The revenues are increasing, the customer base is increasing. We have an active product pipeline commercial which is there. So the efforts are into the right direction, and I feel that we should be in a good business risk. In this business, we should be able to do a good business. That's it. Thank you. Thank you. Before we move to the next question, a reminder to the participants, to ask a question, you may press star and one. Next question is from the line of Rahul Salvi from Franklin Templeton. Please go ahead. Yeah. Am I audible? Yes, please go ahead. Yeah. Yes. Yeah. So I have a question on the CDMO business. So the thesis here was basically that this business can grow faster than the Indian pharmaceutical market, basically by volume share gains as well as gains in private labels, trade generics, et cetera. So that will also drive volume. But this quarter, I think volume growth was just 6%, 5.6%. So if you could speak whether how we can, we should expect this in the full year period, and after that, trajectory of low double digits, kind of a business, is it? Right. So, so just a correction on your, question first. So as volume, as I mentioned, we grew more than 13%. Almost 14%, we grew in volume terms. The revenue growth was 5.9%. So, so volume, yes, we grew faster. If you really look at the market, the volume and introduction, these were largely flattish in, low single digits, if you really look at the math. But we grew double digits, which was almost like a 14%. So the underlying thesis is correct, that we are growing faster than the market, much faster than the market. As was mentioned earlier as well, I submit that, essentially, the business model is a cost plus model, right? So the API prices have an impact on the contract prices or the revenues we realize from our clients. But, as I mentioned, the volume is intact, and as you said, across the therapies, the zones, the clientele we serve, we continue to see a good attraction to our business. If the volume growth was 13%-14%, and the growth is, revenue was 6%, so that means the product mix was inferior towards low price product. Is that how we should read it? So, the product mix remains the same. As I mentioned, the API prices this quarter, they fell almost by 7%-12%, depending on the API therapy, right? So once your API prices fall down, the revenue realizations fall down. Got it. Since it's a cost plus model, every purchase order, it's a complete pass-through to the customers, whether it's a regulatory price or a subsidized price of the API. Okay, got it. And what has led to the improvement in gross margins of around 50 basis points in this quarter, YoY? Sure. So as I mentioned earlier, we received multiple new innovative approvals, the new DCGI approvals, right? So we also had good operationalization of our facilities, right? If you really observe the utilization levels also improved. Right. So it helps us improve the overall gross margin. Okay. And on the- So the product mix in a way. Yeah, and on the full year basis, how should we expect the revenue growth trajectory? So it means the API prices are stable and they are at those lower levels. So the full year growth will also be slower on the CDMO side, in terms of the even if the volume growth might be higher. Honestly, today, sitting today, we cannot predict the API prices, right? While still, some of the API prices have bottomed out, there is still a good chunk of API prices which still continue to see a downward trajectory. Having said that, the key business growth driver for us is profitability and the volumes, right? Those two remain strong. If you really look at it, the EBITDA margins also improved, and the percent margins also improved, as well as the volume growth was strong, right? So as and when the API prices correct, it's right, we'll see an uptick in revenue, but sitting today, it's difficult to comment what is the revenue growth. Okay. And on the branded and generic formulations business, so, if you could speak out between the three segments, I mean, this, trade generics and the third segment, as to what is the revenue split as well as margin split for us to get a better clarity in terms of trajectory. So if you could get in the presentation, is it quite a possibility in the near future? You know, the issue we have is that we don't give that separate financials, right? While we've grossly told you that there is an overall very healthy growth of the EBITDA from INR 7 crore to INR 17 crore, but we would be under compulsion not to probably, you know, disclose something which is not in the public domain. You know, we'll apologize for not letting you know, not give an answer to your question. Because the challenge we face is that these three are completely different businesses having different business models and drivers. So it becomes easier for us to track the performance over a long period of time. That was my assumption. I will fall back in that way. Thank you. Thank you. Participants, for asking question, you may press star and one. Next question is from the line of Christy O. from HSBC Asset Management. Please go ahead. Hi, thank you for the opportunity, so I just have one question on the cost plus model on the CDMO side, because we are also aware that the API pricing downturn has been happening since the end of 2022, and despite that, throughout 2023, I think our performance in CDMO actually did quite well, close to 20% growth, if I remember correctly, so has anything changed ever since? Because if the API pricing trend hasn't really changed and it's actually been improving, yet our performance is actually probably slightly lower compared to last year, is that due to potential outsourcing rates coming down, or is there something else that might be driving that pricing down? Thank you. Sure. So, as I said, I'll bring all the points together. First is the volume growth was intact, right? Almost over 14%, right? The margins, they improved, right? So what trade down the realization is the factor that the API prices went down. Right, so there was a consistent supply from both the Indian as well as the global players. Then there was stabilization in the prices of the solvents and the KSM prices, right? Due to weakened demand in the overall pharma industry, while we grew in the volumes, the overall pharma industry was largely flattish. So all of these factors led to release of inventory from the API players, right? And hence, the API prices and others fell down. While 2022, as you were mentioning, was a period of, but then there have been since then, several API cycles are plus and minus. So, that's clear, right? And, yeah, I hope I've addressed your query. Yeah, I understand the inventory release part, but would you mind clarifying again on what might be the difference compared to last year? Sorry, what might be? What might be the difference in terms of the price acceleration compared to last year? Because I suppose what happened last year when China was dumping a lot of API excess capacity to us in India that had led to a very steep API downward pricing trend. And as you stabilize right now if anything it should not be worse than last year. But despite the downward pricing trend last year we delivered 20% growth. So I'm just wondering what else might be causing the you know price adjustments between this year and last year? So no question. As I mentioned, so the supply, the coming down of the solvent, the KSM prices. As I mentioned earlier, there was almost a reduction from 7%-12% odd in the API prices. Few of the APIs, for example, cephalosporin, paracetamol, continue to see a downward trajectory. So there's still softening of few of the APIs. Okay. Thank you. Thank you. Over to you. Thank you. Participants, to ask a question, you may press star and one. Ladies and gentlemen, anyone who wishes to ask a question, you press star and one. Next follow-up question is from the line of Ashish Thakkar from JM Mutual Fund. Please go ahead. Yeah, thanks for the opportunity again. So given that this is the first call after your listing, and, you know, on an overall basis, would you like to guide the investors? So if I identify, how should we look at the next three quarters panning out? Because the first quarter was of just a 5% revenue growth, while there was margin improvement. Would you like to give some color or some assistance from your side? So Ashish, essentially, so as I mentioned, there have been a good traction to the business. The volume is growing, the margins, they remain strong. We have been performing well. So the endeavor is how can we, perform well? As of today, we cannot give any guidance for the year, but, all the levers, for example, the losses are taken, and they continue, to curtail the API. There's a good amount of effort which is done, to minimize the losses. And as and when the cephalosporin prices, they average out from the current bottom, we might see an uptick in the revenues, right? The export business is going strong. We have good product mix today, which has led to improvement of our gross margins, right? So all of these factors, we believe, the business should grow and do well. But as of today, we do not wish to give out any specific guidance. Is there a seasonality in your business in terms of the quarters? Limited seasonality, but you might win some good orders at times. Some quarters you might win some good quarters, and then there are opportunities which lie with. For example, if I get a regulatory approval in Q3, Q4, that might pan out to lift a good product in demand, right? And then there might be some new customers which we add, which bring in revenues which get shifted from other CDMOs. New companies launching new divisions, that might give us a boost. So while the pharma, if you really observe Q2, Q3 are strong quarters, then driven by monsoon season and then the winter season. But for us, largely, it is good, but we have in the past really seen that some of the quarters might perform well, driven by what our business wins are. Okay, fair enough. And anything on the recent opportunity which you commercialized, would that contribution start from quarter two onwards or quarter three onwards? The new injectable facility, which we commercialized starting 22nd this month. How this happens is you need some time to get the required client audits, they have visited MP and so on. It takes almost six-eight months before we can onboard good clients with good capacities to the business to start with. How do we currently see this business? From FY 2025-2026 onwards, we should be able to ramp this up. We have ampoules while we are also introducing new dosage form, which is lyophilized vials in that facility, and we are hopeful that this facility will make a meaningful contribution to our business. Fair enough. Mostly on tax rates, this quarter, the taxes were higher than what we might have anticipated. How should we look at this full year number? See, so you know, there will be two, the way you look at the taxes is in two ways, right? One would be that if you look at the March 2024 number, there was a Deferred Tax Asset, asset which was created, right? This was due to a merger that happened, right. Now, what is happening is that in the period that, asset is being utilized, so that is showing in the financials. While the payout, the cash payout will be much lower, but when you look at the financials, you'll see a higher charge. If you look at the, deferred tax charge, that is the difference. Otherwise, we should be on a payment basis on 90%-20%, you know, tax for the company. Okay. Got it. Thanks. Thank you. Thank you. Participants, to ask a question, you may press star and one. Next question is from the line of Rohan Vora from Envision Capital. Please go ahead. Hello, sir. Thank you for the opportunity. So, sir, recently, there were some news articles, you know, referring to extension in timeline for Schedule M. So, I just wanted your view on the same. Thank you. So now the article name, government confirmed, government solution, the people have representation, Joe Smith and or CCP. Again, I think it's going to happen, it will happen. So it will have an impact because it's not with us. But the future growth that we have planned, inside that the minor impact is there, not more than this. Because that business, when they are not able to do it, then their business shifting will be with us, so we will get more growth from that, which we have projected. Understood. So there's nothing firm on this? So there's nothing firm on this. It is as per your presentation. Yes. Yes, yes, yes. Understood. Thank you, sir. Thank you. Participants, who wish to register for the questions, may press star and one. Next question is from the line of Chintan Shah from JM Financial Family Office. Please go ahead. Hi, thank you so much for the opportunity. So my first question is on your business revenue potential. So if I remember correctly, our capacity utilization was at 40% for FY 2024, and we have this new injectables facility, plus there were certain facilities which were in Europe that were also underutilized, and now we are announced another two facilities. My question is, what should be the revenue potential when we put all this together, and how much the capacity utilization can increase to? And also, if you can help us understand how should we see the ramp-up to reach the revenue potential? Sure. So, as you rightly said, our capacity utilization was roughly 40-odd%, so which was approximately 2% more than 38%, which we did the last quarter one. Right. So, having said that, injectable, we operate at a good rate. So let's also further understand when we say 40-odd%, max we can achieve, given we have multiple SKUs, due to almost 18,000 SKUs and over 4,000 formulations, which involves a significant change over as well. The max capacity utilization ranges from 50-60-odd% depending on the line, line of product, right? So, what we have essentially done, so injectable, which facility we kick-started, we had significantly good visibility, and we're also operating at good utilizations for our injectable facility. And hence, this project got initiated a few years back, which we got today, this month, got commercialized. Right. So that is there. As you said, rightly said, but we also, we have oral solids and liquids, which again operates at good capacity. Liquids, in a way, can be seasonal when you have cough and cold and oral liquids can be seasonal, and hence to cater to the spike in demand, which can happen, that is also there. Then at times, what we have also seen in the past is, we get, brands get transferred to us from other CDMOs or from in-house manufacturing to us, and hence we keep a buffer of some spare capacity to excel into the service to our customers. As far as Jammu is concerned, what we are essentially doing is... As we recently expanded into newer dosage forms, some will be newer dosage forms and some would be addition of capacities, which we feel. So if we today have thought through it, you would appreciate that it would take a few years from when we can commercialize the facility. So for dosage forms which we today operate at decent capacities, where in between the next two to three years, we might face capacity crunches. And hence, we thought of for putting down a facility in Jammu. Okay, got it. So my question basically was to, you know, to put this all together, say, three, four years out, how should we see the revenue potential? If you really look at historic numbers, if we see the historic numbers, we usually do 2.5-3 times of our gross block. So that is how we see it. While the margin profile from one dosage form might vary to another, but if we really stick to what has happened historically over the last two decades of the operations of the company, this is usually what we do when the capacity fully gets ramped up over the next three-four years and operates at a decent utilization. On the utilization, which you said I was mentioning. So this is a continuous cycle, and that's a sign of a positive business growth. So for example, if we today stand at 40% for any of our units, right? And it's slowly moves up to 50-odd%, then we start to think of adding an additional capacity. The time it reaches to 55-60-odd%, which I mentioned earlier, it's peaking out of our capacity. We add another capacity, it falls back to like 35%-30%, then it starts moves up. Right, so it's a cycle of growth of the company, and that's how we plan our capacity. Okay, got it. Understood. So injectables, how much capacity you put in there? We have put in INR 152 crore in the injectable plant. Okay. This is almost like we're putting in about INR 255 crore. Yes, you're right. When is that expected to come to commission? So over the next 24- 36 months. It's 24-36 months. Okay. Got it. Understood. And secondly, my second question was on the balance sheet side. So right now, if I see the cash flows that we're generating, and we have a balance sheet, and apart from this CapEx, I believe there is no other capacity addition on the card. So how do we internally place cash that we have now? You know, while we are generating free cash flow, and we have proceeds from our IPO, there are specific purposes for which these funds are to be used, right? So of the total proceeds, INR 387 crore goes around paying our debts, right, the working capital in the long term. Some of it will be for additional working capital. Some of the funds that we'll have set aside for inorganic opportunities where we see some synergies for our business. You know, largely keeping them as a corporate war chest for the need that arises. So I think that's largely how we are going to use our cash, which will be on our books. Okay, got it. Understood. And the question was the CDMO margins, so we are somewhere around 15% or... And considering the capacity utilization that we have, we just wanted to understand if this was the optimal margins that we should expect we can do, or there's a scope for improvement. Largely, that's it. So the business is a stable, this is a stable business vertical. I think, this is a stable margin for us. Okay, got it. And the margin improvement effectively, we should expect this from the different segments? That's it. Okay, got it. And just one last question. This is continuation to what the participants asked. If we were to understand the FY 2024 revenues, especially on the CDMO parts, so is it right to say that, you know, there was no element of declining API prices that was involved, or do you agree that the volume growth again in the previous years was much higher? If you just comment on that, it will be helpful. Right. So in FY 2024 as well, there were some decline in API prices, right? So, so we'll also see that. So we deal with multiple APIs, right? So, over, as I said, over four thousand formulations, multiple APIs, right? Some go up, some do go down, right? So, so as a business, what we mentioned in Q1, most of the APIs had a fall in the prices, and hence, we specifically call out that the volume was higher than the revenue, while the margins are intact, which gives the confidence that the product mix was good. Right. So while there would been some previous year as well, the volume growth was still intact, but this is what is an expected nature for this quarter. Okay. Got it. Just one... So I want to understand one more question. So we have done a 20% revenue growth in the CDMO segment last year. So now, I think there is some price decline, so volume growth will be much higher. And if I remember correctly, for the industry, the volume growth was basically... The performance was pretty high. So if you can explain what happened, have we done any comparison back then this quarter, we typically a very sharp decline, even if you consider from a volume perspective. So is that on a high days or what's the reason for that? Can you paraphrase this again? Sorry, there were multiple points. I could not get it. The point in time was, last year, basically, the volume growth was somewhere, if we assume say 5%-7%, decline in prices was in high 20s%, and now it's quite somewhere in the range of 13%-14% or so. I mean, that is what I'm trying to get. I mean, why is there such a sharp change within one quarter, basically, in terms of volume? Right. So, 20-odd% as a volume growth, I don't think we did it last year. So the volume growth, usually what we do, this is a good quarter where we do volume growth and similar growth will we do over the business cycle, right? So that is it. So volume, as you mentioned, it's not really declined, but the volume growth has been positive for this quarter. Oh, okay. Not clear, probably I'll think offline. Thank you so much for answering my questions. Thank you. Next question is from the line of Ashish Thakkar from JM Mutual Fund. Please go ahead. Yeah, just one question from my side. What is the kind of API inventory that you maintain in out of CDMO business? So you know, we sort of have two months, you know, in our CDMO business. Okay. And since we are in the midst of the quarter two, you still feel that the price pressure from the API is still there? That's still relevant, right? Yes, so it will have an impact in quarter two as well. Okay, fair enough. Thank you, and all the best. Thank you. Participants, to ask a question, you may press star and one. Anyone who wishes to ask a question may press star and one. Next question is from the line of Prashant Nair from Ambit Capital. Please go ahead. Yeah, thanks. So I have two questions. The first one is on the API business. Can you elaborate on, you know, your plans for this business? It's a new one for you. So, I mean, will this be... Are you trying to build something similar to what you have on the combination side or the CDMO kind of business? You know, domestic focus or international. How do you see this business evolving over time? There's one major difference, so in CDMO, we work across multiple formulations, right? And hence it gets a domestic focus. Right, APIs are different. We have selective basket of APIs, right? And while the endeavor is to go global, the first step is how can we do right for Indian markets and slowly move to the Indian regulator and finally to more regulated markets, so that is there. The idea, as you initially mentioned, the idea is clear that we have to turn this into a profitable venture. The key costs, obviously, since the business is small, there is high COGS, frankly. Then, as we gain scale, this business will have improved efficiencies as well as margins, which over the last three years as you could read the numbers, is consistent. This is nothing particular about this quarter. Over the last multiple quarters and years, we have been continuously improving our margins. Since this is a new business, which has extensive R&D orientation, extensive orientation towards feeding the APIs to the formulation players so that they continuously use in their formulation. So, it has some gestation period, but we are hopeful this will be a good vertical. And honestly, that's the reason why we separated out from the CDMO business, because we feel it's a meaningful business to be reported independently. Thanks. Just my last question from me. So on your international formulations business, again, similarly, can you elaborate on which are the key markets that you're focused on? What would your, you know, frontline strategy be in these markets, right? So, so Prashant, we today export to almost 65 odd countries. Right, it has a good fair mix of both chronic as well as acute segments. So the idea is to build out, brands which have a prescription, and brand recall. So, we have country managers, in few of the countries which are our priority countries. As of today, we are there in Southeast Asia, South Asia, Africa, covering both East and West. Right, we are slowly, penetrating into other markets, for example, Middle East, LATAM, then, CIS as well. So, all of these markets are interesting markets for us. Couple of years back, we also received European approval for two of the most important dosage forms, one is injectable and the oral solids, which is tablet and, capsules, right? So, we also plan to move to the European markets gradually. We are in the process of filing dossiers. I've already filed two dossiers, which are there in the public domain. Some are there in the pipeline as well. So the idea is selective markets across continents, wherein we can build brand recall and generate good business for the group. Thank you. That's it. Thank you. Ladies and gentlemen, as there are no further questions, I would now like to hand the conference over to the management for the closing comments. Thanks a lot for everyone who has joined in. Really appreciate your time. Looking forward to our next interaction soon. Thank you. Thank you. On behalf of Ambit Capital, that concludes this conference. Thank you all for joining us, and you may now disconnect your