Please note that this conference is being recorded. I now hand the conference over to Mr. Rishabh Barar from CDR India. Thank you, and over to you, Mr. Barar. Good day, everyone, and thank you for joining us on this call to discuss the Q2 and H1 FY 2023 earnings for Cohance Lifesciences. We have with us Mr. Venkateswarlu Jasti, the Managing Director, and Mr. Venkatraman Sunder, Vice President, Corporate Affairs, and Mr. Subba Rao, CFO of the company. Before we begin, I would like to mention that some statements made in today's discussion may be forward-looking in nature and may involve risks and uncertainties. Documents relating to the company's performance have been mailed to you earlier. I would now like to request Mr. Jasti to share his perspectives on the performance and outlook. Over to you, sir. Thanks everyone for tuning in for the call, earnings call for the quarter ending September 30th. As you know, last conference call I have mentioned this year is going to be a flat year, 5% reduction in sales amount. That is at that time, and the visibility based on the visibility we had at that time, and that shows up in our results also. We have the results, as you can see that there de-growth in the CRAMS and whereas the growth in the specialty chemicals. Also that reflects on the product mix also, it reflects on the profitability. Since that time we were thinking that 2023 will have a better traction, 2023-2024. We see better traction since the last call I had with you. Now I'm glad to inform you that we'll not be underperforming. We'll be more or less performing the same range as last year as far as the sales are concerned, based on the visibility we have. Also based on the traction that is having in the movement of the project. Also the interactions we had recently at the CPHI with the innovators themselves. They're saying, I mean, next year is going to be coming back to the normal state. Even though it is quarter-on-quarter it is a de-growth we see, but on a half year basis is on the same range as last year. We hope to perform a little bit better than what last year is all about based on the visibility we have. I mean, in a nutshell, that's what it is. There is a lot of calls coming to us based on the newspaper reports or whatever it is, and through which we have clearly indicated to the stock exchanges, informed them. Since we get so many opportunities and offers throughout the years, we keep interacting with the people that are coming because as you know this is happening since 2019 during the COVID time itself, and since that time so many things are happening. As a forward-looking company, we keep exploring various strategic ideas that are in the interest of the company and creating value for all its stakeholders. I just want to leave you with that thought because there's nothing concrete about anything and these are all the if-then things, and I don't want to comment on those things. If anything is happening, you'll be the first to know because we'll be giving the news the same day. With this, I think I'd rather open the floor to the questions so that we'll give more clarity rather than me giving the upfront assessment. Can we begin with the Q&A? Please. Thank you. 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 withdraw 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 from the line of Sudarshan Padmanabhan from JM Financial. Please go ahead. Yeah. Thank you for taking my question. Sir, while you know you did elaborate that largely the sales is in line with your top progress. If I look at the second quarter margin, I mean, as you mentioned earlier, the mix was adverse and therefore the gross margins was lower. So was the negative operating leverage just you know below the gross margin. You did you know said you know maintained that the margin should be over 40% + excluding the other income. Would that understanding be right as far as mix is concerned? That probably the mix towards pharma would normalize in the second half, and therefore the margins even in the second half would be better. I keep telling everyone over the year, you cannot go by quarter-on-quarter basis because of the product mix and various other things. Many of the projects not going in the last week. It may go into the first week of next month or after the quarter ended. All these things will play a role. The guidance of 40%+ EBITDA margins over the year and throughout at the end of the year will be. We are giving you that guidance. Sure, sir. Sir, you know, on the mix as well, I mean, should we assume that, you know, if I look at the mix this quarter, historically, the pharma has been contributing between 55%-60% of the overall mix on sales because it dropped to 40%. This should also normalize as things moving forward. Yeah. As well as we go into the over the year it will grow because this year, I mean, this quarter, especially the trend is only 40% and 60%. As you rightly said, 60% is specialty chemicals. As you know, the profitability is there is a differentiation between these two. Over the year, over the quarters, it will normalize. Sure. Sir, you know, one final question from my side is, you know, we have a very strong pipeline. I mean, have up to 5 products -6 products on the phase III on the pharmaceutical side, about 2 molecules -3 molecules on the specialty side. You know, we are also embarking on this CapEx of INR 200 crores annually. Plus, you know, also investing into the formulation side. I mean, just to get us in. I mean, I'm not talking about specifically quarters over here. You know, directionally, if you are looking at the sales between, say, that FY 2018 to FY 2020, where we got just a spate of commercial molecules coming in and the growth was significantly higher. I mean, that was really a very good time for us in terms of margins in on every aspects. Over the next three years, I mean, do we expect, you know, a fair lion's share of these molecules coming into commercial and, you know, probably the growth prospects coming back very strongly? I'm talking about over a you know phase of, say, one year, two year, rather than quarter-to-quarter. As I was telling all the time, my visibility is only six months. As of now, nothing is sold by the customers that something is going to the next level. As you know, we have five molecules, I mean five compounds which further goes into the three different molecules. They can come, but there is no guarantee in this business, as you know, because this is a zero to one. All three can move into the commercial or maybe one can move or maybe none can move. I cannot tell because that's the success. As the clinical trial will give us the opportunity. Meanwhile, there are. As I was telling you, the traction is there, the movement is there, and some of the phase II molecules should move into the phase III also. The reverse also. I mean, the other way also, phase I to phase II also. As the traction is becoming, actually, stronger. I hope, success of the molecule. Traction is one thing that gives you the, at least the initial, revenues and all. But, as you rightly said, for the commercial only that gives you better margins and longevity of the, visibility. So that depends on the success of the molecule at the clinical trial. As of now, without having any knowledge from the customers, it is very difficult for me to tell whether this is certainly a 1/2 or 2/3 or 3/3 will make it, and none of the three will make it. I have no idea, sir. Thanks a lot. I have no question. I'll join back. Okay. Thank you. The next question is from the line of Darshit Shah from Nirvana Financial Solutions. Please go ahead. Hi, good. Thanks for the opportunity. Sir, if you could tell us more about if this quarter had a revenue of the COVID drug that we commercialized last six months back. If you could quantify or give a broad range where how much is this contributing to our top line? This quarter nothing. I mean, it's very small amount, but likely to grow in the next quarter. It's not definitely this quarter. Wow. Sir, Based on the requirement at the individual level. Got it. Sorry. Sir, how much would that be? Would you be able to give any quantification or you won't? No, at this time, I cannot give you the quantification. Only post facto I can give you the quantification. Because if I say something, then tomorrow somebody will come and say, "How come you said so much and it has not gone there?" Because you say that kind of thing, it's not a regular product. It is requirement of the customer. As I was telling you, say one-off kind of thing, we still get the order. That will be delivered before March. The next year we are only counting 50% of what is going to come here. Unless it changes in the direction, and then things can go on. It's very difficult for me to tell, but I can't give a number right now. Got it. Sir, when we are hearing or viewing and talking to different management, we are hearing that the opportunity of the Indian CDMO players, given the cost rise everywhere that's happening in Europe, U.S., you're seeing good amount of traction for quite a few of the Indian players. What's your view on that? Are we kind of seeing that kind of normal traction which we used to see earlier? What is it again? Question is? Sir, my question is pertaining to, you know, given the cost rise we are seeing in Europe and U.S. and that's giving a lot of opportunity for Indian CDMO players. That's what the management are saying. Are we also seeing that kind of attraction in terms of inquiries or something? No. That may be true for the generic denominator players. In general, what I said, the traction is much better is because the innovators are now going into the normalcy and more projects will be started by them. That means more RFPs will come because targeting certain COVID is gone now. It is now we are progressing on the regular molecules, and that is giving a traction. Clinical trial phase is being run on a much faster pace. That also gives you some traction. On a cost basis, not really for us. Eventually this may come when the new projects which are supposed to go to other countries may eventually come to India. As far as the innovator firms comes in, not many players outside the other countries. We see the traction, but not so like a China Plus One kind of thing like in generics. Got it. Sir, lastly, when we are seeing that we are kind of exploring opportunities for us, if and when we are meeting people, obviously I understand that those are the people who are coming to us and not we kind of specifically going to them. Sir, strategically, if you could broadly throw some light on what we are looking at now when we say we probably have stake share. Are we looking at a very strategic stake share or probably some other given significant kind of stake at a given value we are getting from you know, someone is offering good value. If you could then throw some bit of light, that is probably okay. See, we never look for anything other than the strategic option. If somebody comes in, we listen. We don't say no to them. What they bring to the table, we don't know. There are various people that are coming. Is that a value add for us or not? Is it going to give a long-term benefit or not? Is it going to be matching with our requirements or not? All those things we take into consideration. It can mean anything. It can be a what do you mean merger with somebody else or it can be whatever they bring. Strategic collaboration. Strategic collaboration they bring in through the funds, institution or whatever it is. They already have a partner with them. They would like to be a part of that one. We listen to them. I mean, whenever those options may come. This is not the first time. This is happening since 2019. When I see only, we've taken the option of getting a value-added thing like a CapEx. Eventually that's based on our, so I mean, our money that we have. If we have to take a little bit bigger things, then we need to involve third party also. These are some of the things that are coming into the things, and we have not yet taken a decision, anything, because only when we take it up and we'll be able to give you a clear picture. We are open and but it has to be a long-term benefit and with a shareholder value creation. It should be a because we cannot take just another new kinds of things because the business model is different compared to others. All those things we need to look at. Thank you. Ladies and gentlemen, we request you to please limit your questions to two per participant in order to ensure that management is able to cover all the questions from the participants in the queue. Should you have any further questions, you may join the queue back. The next question is from the line of Abdulkader Puranwala from Elara Securities. Please go ahead. Hi, sir. Thank you for the opportunity. Just wanted to understand that you maintained your guidance, I mean, second half from a product mix point of view, would it lean more towards pharma or the run rate what we are seeing right now in specialty chemicals that will more or less largely continue for the next couple of quarters ahead? Right. Pharma is no more. Oh, okay. Sir, in terms of the CDMO pharma space, how many molecules would be there in the commercial phase right now? Eight. 8. Does that include the COVID one as well? Yes. Okay. Just final one. On the Vizag side, sir, has that site been inspected by any of the customers or any color you could provide with regards to the commercialization starting from that would be helpful. No, because if we change customer, most same products from one unit to other unit takes a couple of years. In this process, there are three customers, who are regulars. They have taken validation batches in Vizag. I think that will give us like another six months the, I mean, what you call, that way. Whenever the requirement comes, the next order can come and go to that place also. Within next 6 months - 9 months, these validations will be getting placed. All right, sir. I have few more questions, but we'll jump off the queue. Thank you. Thank you. The next question is from the line of Rashmi Sancheti from Dolat Capital. Please go ahead. Yeah, thanks for the opportunity. On the specialty chemicals, you know, earlier I think you had guided that, you know, it would more or less be for the year. In the first half, we are seeing, you know, good 21% growth. Are the sales coming from the existing three molecules or, you know, any new molecule has been commercialized in this? As I said, there is no third molecule there. It's It's only two molecules, and we clearly said only one quarter that third molecule was there, and this will not come back until 2024 ends. Similarly, the fourth molecule also will not come back until 2024. That's why we said it's back load based on the two molecules, plus a small scale of the third molecule. As of now it's only two molecules for this year. Do you think in your guidance for specialty chemical business, earlier, you know, when we expected a flattish growth for the year, or we expect that, you know, the second half would also be better and therefore the growth would be much higher? may not be much higher just because there are a few businesses. There will be maybe a 5% more than what we thought of. That's all. Not much higher than that. Okay. You mean to say, for the full year, maybe 5%-6% on FY 2022? Right. When we started, the plan was it may be 5%-6% more. Okay. Sir, on CDMO pharma, in second quarter of FY 2022, how much was the COVID sales product? Can you quantify that? I don't have the number. I mean, usually we don't really quantify individual molecules size with the overall portfolio. Because it is being a COVID as one-off, we checked that what was the quantity which we got, take it again, which is like one-off. Otherwise, you know, we don't really give the split details of individual molecules commercial. Okay. Sir, in second quarter, whatever is lower sales which we have done in the CRAMS, it is generally the sales which had gone low, or there are any deferment of the orders which is expected to come in H2, and that is why you're guiding that, you know, H2, we will be performing better. Yes. Not only with, I mean, visibility and orders, but also some deferment is there. That also we have to Can you quantify how much orders have been deferred, you know, from second quarter, which will go in third quarter? Any number if you can quantify? We already told the earlier caller that I cannot tell. They may go in the next quarter or may go into the fourth quarter. At the end of the year, it will go. I cannot give you a quantity of each and every item, how much sales. I only give you the way things are moving so that you'll know when I said that I'm going to make it to last year's numbers, I will make it. Because originally I was telling 5%-10%, yes. This time based on the, what you call, the traction and also the visibility and also some of the things that are existing, we are confident of reaching and surpassing that number. On your overall revenue guidance, you stick to it that, you know, we would be doing the flattish growth on a high base of FY 2022. Yeah. Of course not, little bit, we back the number. It's not flattish. It will be maybe 2%-3% to 5% growth will be there. Okay. 2%-5% growth would be there. Sir, on your gross margin, you know, in this quarter, we are seeing that quarter-on-quarter there is a dip. It is only related to the business mix because we have a higher specialty chemical business and lower CRAMS, or is there any other forex element or anything, which has impacted it? No, I mean, it's now many things. As you know, it's a 60/40 towards the lean towards the specialty and also some other things which is made and deferred to the next quarter. It's many, but at the end of the year it will match out. If you see half year, it is almost same. The guidance will remain the same, like the 40%+ EBITDA margin by the end of the year for sure. Thank you. The next question is from the line of Hussain Kagzi from Ambit Asset Management. Please go ahead. Hi. Good afternoon, sir. First thing was just a clarification to an earlier participant answer. You said eight molecules in commercialization. That is including specialty chemicals? No. That is for pharma that we have 8 molecules in the commercial phase. Yes. Okay. The other thing was just to get a quantitative sense of the total projects that we have in pipeline. I know we don't share the numbers, but how is the total projects looking, say, compared to a year or two years back? How is it growing? Can you give some sense over there? Because eventually those will translate into revenue, right? Yeah. They are more or less flat on the numbers, right? At the same time, the movement is, we see the traction much better as I was telling. The movement of the new order, I mean, new RFPs should be increasing certainly in the next year. It's not so bad based on the conversations we had recently in the CPHI show. Got it. Are we also getting any molecules or compounds in later phases? We'll say like phase II or phase III, where the requirement from the innovator is that they need to fast track the say manufacturing for that. Are we seeing some kind of projects that like that also? No. We see the lead routing only, and it can be either phase I or phase II entries. That's all it is. Unlike the COVID molecule, nobody comes suddenly to phase III and give you a molecule that regulatory filings and all that stuff. Not that kind of thing is not happening. Only the new molecule and a new offering is increasing. I mean, new requests for quotations are increasing. Understood. The last question was, what is the update on the CapEx that we were undertaking, and is it going on plan and any future change in the CapEx plan? Also on formulation segment, if you could give some update, what is the outlook in the near term that you are seeing? Thank you. In CapEx, it's, as you know, I mean, we have sole and futuristic and the replacement CapEx, but we spent about 1/3 of what we were supposed to spend, I mean, and the rest of the 2/3 for that site, accelerated, will be spent before the end of the fiscal, which is March 2023. With respect to the formulations, we got the FDA approval, as you know. At the same time, the goal date for the molecules filed for that will start. I mean, we have started working on one, but it will start sometime in March onwards next year. We expect some revenue accretion to take place, from the beginning we are telling it's not 22.3%, it will be 23%-24% upwards. Understood. Thank you. Thank you. The next question is from the line of Amar Mourya from AlfAccurate Advisors. Please go ahead. Sir, thanks a lot for the opportunity. Couple of questions, sir. First thing is that you said that now likely to perform in line with the industry for the second half. I mean, are you changing your guidance? I mean, at the starting of your call, you had indicated something like that. Just wanted to understand what was exactly that. How the second half for the pharma and for the specialty CDMO looks like, sir. The same thing I told you last time when we spoke, we said it will be a 5% less compared to last year or a flattish year. With that based on the visibility and all that stuff, we'll just surpass that maybe 2%-5%. Earlier I was telling 2%-5% growth will be there overall. That way, and also second half looks good on both fronts, both on the CRAMS, pharma CRAMS and specialty. Okay. When you say the second half looks good. I'm saying, I mean, trying to understand. In a second half versus second half, are we going to see some growth in this? Because I believe CDMO pharma, otherwise there is a high base, right, of the COVID molecules, which was there largely in the second half, right? I mean, totally what I'm saying is total sales will be, we are surpassing compared to last year. It will come. I mean, you'll know rather when it comes in, but right now I cannot give you a split on that now. Totally we are saying that the guidance instead of -5% it may be +2%-5% rather than the flattish growth. Last year the overall revenue was about INR 1,320 crores. During the last quarter, you know, we have informed that it will be more or less trying to meet that, if we- Despite the COVID. Despite the COVID-related molecules which was there as one-off. However, you know, as we are in the last six months now, you know, we have better visibility. Based on this, it looks like that we'll be surpassing the INR 1,320 crores overall, which includes a mix of, you know, pharma products which include commercial as well, you know, specialty chemicals. All put together will be crossing, it will not be flattish. There will be a minor growth which could be 2%. If we are lucky, it could be as much as 5%. That's what we are trying to do at this point in time. Based on what it is like, you know, last INR 1,320 crores of, last year's turnover. For the six months we have achieved about INR 617 crores. Which means that if in next quarter, next half, obviously it has to be better than the first half to reach whatever it is we are talking about INR 1,320 crores. That's what it means. Okay. Basically that way you are saying second half would be better than the first half. Correct. Okay. In terms of the, sir, gross margin, like, you know, overall, we maintain that guidance of the full-year guide of the gross margin? Yeah. We clearly said that we will be having a 40%+ EBITDA margin for the full year. For the full year. Yes, sir. Basically This is basically based on the product mix, right? Probably, you know, at the end of the year we will know exactly what it will be. We always give a guidance of 40%+. 40%+. Basically, sir, if I see average, I think, even in the first half the average is around 40%. Basically, what we are saying here is in the second half in terms of the EBITDA margin perspective also it will be better than the first half? Yeah. To meet that it will be going back. If there is a pharma CRAMS or specialty chemicals, the ratio changes. This is also slightly. Okay. We are giving basic guidance. Yes. Okay. Okay, sir. How, sir, then FY 2024 will look for us? It is too difficult to say at this point of time. We always give guidance only for six months. Qualitatively, customers are saying, they are coming back to normalcy, and that should lead us to better traction and better opportunity. Other than that, I cannot say anything. We're not going to quantify at this point because we always go by the order book position. Okay. No, very difficult to predict, Kader. Thank you. We'll now move to the next question. Participants, we request you to please limit your questions to two per participant. The next question is from the line of Cyndrella Carvalho from JM Financial. Please go ahead. Thanks for the opportunity. Sir, just wanted to understand your view. As you're indicating that, we are, in terms of, R&D projects, inquiries, we are reaching the pre-pandemic level. Can you help us understand the traction a bit more from our perspective and from the industry perspective, depending on your interactions with the industry participants? As you know, over the last 3 quarters, 4 quarters, the number of inquiries are less. Maybe 7% or 8% or something like that. Now they are going to almost doubling to that level. Also, it doesn't mean all the RFQs will mature into a commercial. I mean, only placing an order and all that stuff. Eventually that will add up. Similarly, based on the interactions we had after 3 years, we are meeting first time only one customer during CPHI. They're also hoping that. Not hoping, they're saying that they are coming back to normalcy, and the next year budget should give you better traction. The new molecules that they're going to concentrate on compared to the repurposing of the old molecules for the COVID-related activity, which was the case for the last 2 years. In that vein, also the speed with which the commercial and the clinical trials happens also gives us, based on the success, more opportunity for us to get the revenue. All in all, the traction is good. Whether it will ramp up to be a real positive, it's always a lag time in biotech. Either 6 months -9 months, or it is 1 year-2 years. That's the question. Then only time will tell on that. That's helpful. Sir, if anything that you would like to highlight on our hiring of new CEO, anything, any update on that, which you would like to share? No, nothing has happened, and it's very difficult to get somebody on a permanent basis for the long-term basis. We are still trying in-house to have a growth, bringing in people who are, you know, working for our organization. That's also taking time. As of now, I mean, it takes another six months before I can have any concrete proposals. That's helpful, sir. If I can squeeze in one last question. What I understand is our overall traction will be better in the second half. Given that there are certain price easing or the raw material inflation also easing, does that carry forward into the next year also? Is that understanding correct from the margin perspective? Yeah. I mean, you may have your raw material prices goes down, but the other things is going up. From the environmental angle, year-on-year expense is going up. Secondly, the fuel and power costs also going up. It's a mixed bag. Right now, second half we're telling based on visibility. The future, we are basing up on the qualitatively based on the interactions we had with the customers. Thank you. We'll move to the next question from the line of Ranvir Singh from Edelweiss Wealth. Please go ahead. Thank you for taking my question. Question was related to the Casper Pharma. We had the instruction, you said the instruction in July. For first three products we have filed. Wanted to understand what's your status there. In, when we can expect, you know, commercialization of this product or where we are in approval process, stage? Yeah. As I was telling, answering to the caller, I mean, we have filed for 4 NDAs. One we just launched, but it's a very small value. The next ANDAs are starting in March of next year. March and June or something like that. During this time, we are going to file another 6-8 NDAs within the next 12 months. The revenue generation, if at all, will be happening during 2023, 2024. Not much during 2022. Okay. Just a general question on client side, because we saw other players in CDMO business also reporting a weaker number. Wanted to understand at macro level, is there any shift or any change or, you know, sluggishness in demand or if you have witnessed any, you know, sluggish in inquiry. Any of this sort of indication are you witnessing or this is just a cyclical things that is that happens more often and next quarter we'll see more of this coming back? See, the CDMO has two different connotation. There's the regular products and innovative products. Innovative ones are depending on the clinical molecule at the clinical trial level. We are saying that here it could be a negative growth for technical contract, that it goes. Now we are saying we are going to surpass that. It is despite the additional revenue we generated in the COVID, which is not going to last that much going forward. That means the traction is there. And based on the qualitative interactions with the customers, and they are coming back to normalcy, that should lead to give us more opportunity. Doesn't mean that will really generate some revenue because at the end of the day, it is the success of the molecule at the clinical trial will give us the more benefit. It's as and when it happens, as I said, as of now we have only six months visibility. Based on that, we could give you better than last quarter's performance for the next six months. One of the things I wanted to understand, like in, you know, after COVID, during COVID there was, you know, a lull in demand. There was a slowness in clinical trials, so there was, you know, a significant fall in new inquiries. Then again there was a pent-up type of demand, after, just after COVID. Suddenly the inquiries started, you know, gearing up. That I wanted to understand, is there any angle here that because just after COVID there was a lot of inventory supplier inquiries has already been met. Now there is some slowness here in this quarter. Is there any kind of, you know, these trends you are seeing in the business? No. I mean, it's one of the. As I was telling you, until now it was slow and the customers are saying they are getting back to normalcy. Normally that will lead to maybe have more opportunities and that will be shown in our next six months outcome. Hoping that will continue in the new year also. That's what our hope is. Thank you. The next question is from the line of Rohan Samant from Multi-Act Equity Consultancy. Please go ahead. Hello. Am I audible? Yes. Yes. Yeah, my question was on the number of molecules that we have in the commercial phase. You said that we have eight molecules in pharma CRAMS. I think earlier we were saying that we had five products. Are these eight molecules from those same five products and different variants we are counting as different molecules, or we have had incremental molecules flow into the commercial? Yeah, there are couple of incremental molecules mainly for the antiviral, and that is not going to give you too much of a volume in general. Only the numbers goes up because they are launched in something in last year first quarter or this year first quarter. That's why we said we thought. Because being a very small volume, we never know that it is in the phase III also. Because it's very difficult for us to know until it goes into commercial because they do not divulge what stage therapeutic area and what stage it is there. Couple of them were assuming in the phase II actually, based on the quantity. They were when we find out that it was in the what you call the launch stage. The volumes you cannot write. Even though the numbers goes up, it's only a very small volume like a phase II value, like only, but the numbers have gone up to eight. Okay. Out of the eight, two are such smaller products, right? Very small products. Yeah. Okay. One incremental large product has also gone into commercial because we had five earlier, right? No, that's only Dextrose. It's only Dextrose. Oh, okay. Thank you. Two small products. Yeah. Thank you. Thank you. The next question is from the line of Ayush Vimal from Clearview Capital. Please go ahead. Thank you. I have two questions. Is there any discussion with customers on forward integrating into API manufacturing? I think you had updated last quarter that some of these discussions might start. Yes. We have that customer, what you call, we have interactions with them. It will be, as I said last time itself, it will start sometime in the year 2023 because now only they started, what you call, traveling and all that stuff. I think this is the end of the year for them. Their year is the usual, the calendar year. I think they will plan for some time in the next year, and hopefully. I mean, two or three customers shown interest. We see in different departments, compared to where we work with them because we're in the developmental cycle. They're in the mature cycle and generic cycle. We are looking in that direction. I mean, it will start next year. Okay, thank you. One more question I had was on the CapEx of INR 600 crore that we've earmarked for the next couple of years. Just to clarify, this is entirely replacement CapEx and this is not going to increase our capability or capacity in any form, right? Yes, it's one is really a very replacement CapEx purely that is going on. That will be finished before the end of the year because that's a 35-year-old unit, so you need to have a new plant. The second one is contingent upon the government asking us to move out of the Jeedimetla R&D site, which we just taken permission from the board for INR 200 crore. That we don't know because only when the Pharma City opens, I think then they have asked us to fast-forward our activity, so nothing is being spent on that. Only INR 150 crore is for the future CapEx, and that will based on the traction of the molecules that are there because it is you have to do proactively. I think it will be done sometime in 2023, 2024, not right now. Got it. If If I may just squeeze in one more question. Do we have any escalation clauses built into our contracts, given that, you know, we face raw material escalation? Are we in a position to pass it on to our customer? If yes, then with what lag? See, in the CRAMS business, because they give you once a year, and then once we take the order, it's already taken care of. When any increment in the raw material happens, when the repeat order comes, we can charge. When one of these orders is placed, nothing we can do. On specialty chemicals, that will be on a regular basis, so that will be requesting and, if the prices are gone up by more than 10%, then we'll pick the new price. I mean, because the raw material escalations will be given to us, and that's the only way we can get the escalations now. Thank you. The next question is from the line of Darshit Shah from Nirvana Capital. Please go ahead. Yes, sir. Just one question on the cash and cash equivalents, including mutual fund investments. What's that amount as at the end of the quarter? The total right now is about INR 354 crores, of which the investment is about INR 290 crores. Okay. INR 354 crores as on September. No, only cash is about INR 350 crores. The INR 350 crores investment in some various bonds or treasuries were INR 290 crores. All right. Thank you. The next question is from the line of Abdulkader Puranwala from Elara Securities. Please go ahead. Yes, sir. Hi. Thank you for the follow-up. Just on these 8 molecules what you have commercialized, would it be fair to assume that in the quarters ahead, it would be the only 5 projects what we had previously would be contributed to the revenue, while on the other 3, you know, it may or may not contribute ahead? They are equally distributed. Like, you cannot say that which one contributes because we have an order book for next, you know, six months which we are able to give. They're under delivery. Few of them are to be delivered this quarter as well as following quarter. Sometimes they may ask us to defer for about maybe one quarter kind of thing. There are cases where it happened, actually, they wanted us to supply much ahead of time, which we did actually, like last year also we gave them, the first quarter also we gave. This is based on the, you know. One thing is like we don't have a stock and trade like that. It's all based on the order book. No, they are pretty much distributed. It's like you can't say that actually, whether the contribution is going to be there only for three products, four products, because some of them will be there, a small quantity. May not be a big quantity, but it will be there. Sure, sir. Got it. Lastly, what would be the fixed operating cost of the Vizag and the Casper site, if you could, you know, provide that number? No, Vizag, you know, we are not giving plant-wide cost. Okay. All right, sir. Thank you. Thank you. Operators, if you wish to ask any questions, please enter star and one. Ladies and gentlemen, as there are no further questions, I now hand the conference over to management for closing comments. Yeah, thanks everyone for tuning in for the earnings call. As I was mentioning last time when I was talking to all of you, we were not sure about the traction, and hence we gave a guidance that flat to minus 5%. Based on the next six months visibility and the qualitative interactions with the customers and the movement of the molecules and their book position. We say now that we will certainly surpass last year numbers with a positive bias. There will be normalcy coming into the global, you know, veterinary now and the genetic trials being fast-tracked over the new, current indications that are meant for us originally. Based on that, we hope that 2023, 2024 will be good years, but I cannot give you any quantitative guidance on that. With this, I thank you everyone and hope to catch up with you in the next conference call with positive results. Thank you. Thank you one and all. Thank you very much. On behalf of Cohance Lifesciences Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.