Ladies and gentlemen, good day. Welcome to the PI Industries Limited conference call for analysts and investors. As a reminder, all participant lines will be in the listen-only mode. 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 touchtone phone. Please note that this call is being recorded. The call will be for a duration of 30 minutes. I now hand the conference over to Mr. Nishid Solanki from CDR India. Thank you and over to you. Thank you. Good morning, everyone, and thank you for joining us on PI Industries conference call to discuss acquisitions announced into Pharma API and CDMO space. Today, we are joined by senior members of the management team, including Mr. Mayank Singhal, Executive Vice Chairman and Managing Director, Mr. Rajnish Sarna, Joint Managing Director, and Mr. Manikantan Viswanathan, Chief Financial Officer. We also have with us Mr. Anil Jain, Managing Director at PI Health Sciences Limited. We will begin the call with comments from Mr. Singhal and thereafter Mr. Jain. After that, the forum will be open for question and answer session. This call is being hosted to facilitate a discussion around the announced acquisitions. Being in silent period, the management will be constrained not to respond to queries on any other aspects, including financial performance. Participants are therefore requested to limit their questions only to the announced acquisitions. Before we begin, I would like to underline that certain statements made on the conference call today may be forward-looking, and a disclaimer to this effect has been included in the conference call invite shared with you earlier and is also available on stock exchange websites. I will now hand over the call to Mr. Singhal. Thank you and over to you, sir. Yes. Once again, good morning, everyone, thank you for joining the call today. We have circulated the relevant documents pertaining to the acquisition on April 27, 2023, and these are also available on the website of the stock exchange. Hope you have had a chance to go through this. Thanks. Now I would like to quickly summarize the same for you. PI Health Sciences Limited is a wholly owned subsidiary of PI Industries and has executed definitive documents with one Therachem Research Medilab and promoters and Therachem Research Medilab (India) Private Limited. TRM India has acquired 100% shareholding of TRM India, which is an Indian subsidiary of TRM US. With TRM US and promoters and Solis Pharmachem Private Limited to acquire 100% shareholding of Solis Pharmachem, which is again an Indian subsidiary of TRM US. PI Health Sciences Netherlands B.V. is a wholly owned subsidiary of PI Health Sciences, entered into a share purchase agreement with Plahoma Twelve GmbH, which is an existing sole shareholder of Archimica S.p.A. for acquiring 100% stake in Archimica S.p.A. PI Health Sciences USA LLC is a wholly owned subsidiary of PI Health Sciences Netherlands B.V. and has entered into an asset purchase agreement TRM US and its promoters for acquiring certain identified assets of TRM US. These announcements are in line with PI's long-term strategic vision of building a differentiated CDMO offering across the pharma value chain. We're excited about these acquisitions as this marks accelerated beginning of the PI journey into the pharma space, a unique ability to build concrete offerings from abstracts situations and leveraging our capabilities across complex chemistries and business build-up capabilities in the value chain, once again, helping create a differentiated value proposition to our stakeholders. These acquisitions are also aligned with PI's approach of working with global innovators at the forefront of innovation, science, technology and human ingenuity to create transformative solutions in the life sciences with the purpose of reimagining a healthier planet. The purchase considerations will compromise for TRM, $50 million and an additional $25 million on performance-linked payouts over the next six years. For Archimica, we have EUR 34.2 million upon closing. These purchase considerations will be paid in cash and funded from the company qualified QIP placements, proceeds and internal accruals. Both acquisitions are expected to be earning accretive at immediate effect. I would like to add that the consummation of these transactions and integration into a corporate structure PI is expected to be completed in Q1 2024, subject to fulfillment of customary closing conditions and regulatory approvals. With this, I would now like to conclude the opening remarks, and I would hand it to Mr. Anil Jain, the manager of PI Health Sciences, to take it further to give you further inputs and details. Thank you. Over to you, Anil. Thank you, Mayank. Good morning and a warm welcome to everyone on the call today. Let me briefly explain the differentiated business model that we intend to build in PI Health Sciences. As a long-term strategy, we are building a niche and integrated business model starting from R&D, starting materials to APIs. One-stop solution. We are building a world-class integrated pharma research center in IKP Hyderabad, which is in Genome Valley, for CRO and CDMO offerings. This will notably widen the set of target customers across the entire pharma value chain by helping us to leverage the expertise of the acquired entities' R&D capabilities. Let me tell you briefly, TRM is innovative chemistry-driven solution provider in medicinal chemistry research, process research and development, specializing in the rare disease area, which ultimately connects to the, you know, rare disease platform in the advanced markets. It provides services and products to pharmaceutical and biopharmaceutical companies in the pre-clinical and clinical stages. It has manufacturing facilities in India and R&D facilities in the India and the U.S. TRM R&D team works closely with the market publicly listed U.S. biotech companies and big pharma companies based on Asia Pacific in developing their product pipeline. TRM had consolidated revenue of $33 million, with a normalized EBITDA of $40 million for the year ended 31st March 2022. About the other transaction, Archimica is a Italy-based, highly reputable small scale API manufacturer and contract development and manufacturing organization servicing over 60 market customers in more than 30 countries. Currently, Archimica owns 24 US DMF. They are for all the niche APIs, GMP manufacturing facility for the APIs and intermediates across a wide therapeutic and substance class, such as oncology, anti-ulcer and anti-rheumatics. All these therapies are right now in the progressing more than the, you know, average rate. Archimica's manufacturing facility near Milan is certified by the major regulators like U.S. and the local regulator like AIFA. Archimica had revenue of $45 million and EBITDA of $7 million in the year ended 31st December 2022. While the acquisition of the Archimica has been completed with effect of 27th April 2023, and thereby Archimica has become subsidiary of PI Health Sciences Netherlands B.V. We expect to close the acquisition of TRM and Solis by end of May 2023. Our objective is to build a unique position for ourselves in the high potential space of pharma API and CDMO by leveraging our inherent competencies in complex chemistry, process development, operational excellence, technology platforms and global reach through collaborators with prominent innovators. This concludes my initial comments. I will now request moderator to open the forum for question answer. Thank you very much. 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 touchtone 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. Since this is a 30-minutes call, participants are requested to ask only one question. You may join back the queue for follow-up questions. We will wait for a moment while the question queue assembles. We have our first question from the line of Aditya Jhawar from Investec. Please go ahead. Hi. Thanks for the opportunity and congratulations to the team for wonderful acquisition. My first question is, you know, what is the capacity utilization of Archimica and what are the, you know, CapEx plans for the company for the next couple of years? Just to add to that, if you can also highlight that what are the growth drivers considering we had 11-12 active and but still we have, you know, about say 24 DMFs. If you can just speak about this. Okay. Let me give you some background. Archimica is a 75-year-old company, and these 24, 25 DMF have been filed over a period of time. Out of that, 12 products are right now active, which right now are giving this revenue which you mentioned. As per the capacity is concerned, you know the 50% of the capacity is currently employed in making these niche APIs and 50% capacity is available for us to, you know, make a further CDMO activity which we want to wish to do over there. I hope this answers your question. Yeah. The CapEx plan, sir? You know, we it's a regiment running asset and you know so there are normal CapExes which are required to be done. There are no specific requirement for any particular CapEx. It's a normal running plan which is required and some strategic CapEx we might do it in the coming days based on our, you know, various development activities. Sir, last question. I mean this, management retention plans of Archimica? I mean, we clearly have staggered payment in TRM. Come again. I mean, your question was not. Your question was what, Aditya? You're asking management retention plan of Archimica. Yeah. Archimica is currently employed, owned by a fund which we have, you know, bought over, and we have directly taken it as a complete leadership team. we don't see any challenges of any talent retention there. There is good leadership there which will continue to work and grow the organization. Perfect. All the best. I'll join back in queue. Thank you. Thank you. Thank you. We have our next question from the line of Rohit Nagraj from Centrum Broking. Please go ahead. Thanks for the opportunity and congratulations. My question is, we have been telling that on the pharma side we have done lot of trials on the R&D as well as pilot stage. What is the commercialization schedule that we are looking at across these three geographies over the next maybe one to three years? Thank you. Currently both these companies which we acquired, they are all running and they are producing and they are selling product in the market. Are you referring to our research center which we are building up anew? I understand that we have done pharma related trials at our R&D and pilot, and those products were supposed to be commercialized, but since we did not have any facility, this is the facilities which we'll be using for commercializing those products. I was just asking from that perspective. No, as you know from the pharma side, we've been working on certain initiatives. They've been in the non-GMP space. These two are not related, to be very frank. With the CRO/CDMO play that we are doing, that's more on the intermediate chemistry-based capabilities. Okay, sure. Thank you. Thank you. We have our next question from the line of Vivek Rajamani from Morgan Stanley. Please go ahead. Hi, sir. Thank you so much for the question and, you know, congratulations for this acquisition. You earlier highlighted in the past that you'd be looking for pharma assets that could complement your existing portfolio. Just wondering from these assets that you've acquired, are you looking to extract any kind of synergies with respect to the facilities that you have that could help in your own product development and/or customer acquisition? Thank you so much. Well, you know, the pharma space is a bit different than the agri space. The only synergy that could be a potential, which could be late stage, is to look at value addition through backward integration and non-GMP intermediates of the PI existing assets. The key complementary capabilities will be in the area of complex chemistry, business processes, operation excellence, and understanding global customer management. Those are the capabilities which could be quickly leveraged to create the integrated play in a differentiated value offer to our customers. In the strategic front, there is one more area which we are also looking. You know, currently the one company is working the preclinical and clinical side of it. They have been working this space for last eight to 10 years now. Many of the program has moved to the phase II and phase III parts. Now these all programs would complement us for the GMP asset which we have bought in the Europe. That's the strategic fit which will happen. Got you, sir. Thank you so much. Thank you. We have our next question from the line of Rachit Ganatra from Max Life Insurance. Please go ahead. Hello. Sir, could you spell out the client concentration for both of these companies, for TRM as well as for Archimica? Client concentration, well, you know, right now, both, like for Archimica has more than 60 clients right now for the revenue of EUR 40 million. Similarly, TRM also has more than 10 clients where they are working with. There is no as such any dependence on a particular client. The services by platforms are open, we are in touch with many clients where we are doing the business development activity. Plus, we are setting up a new full-fledged business development capability within this organization to leverage further. Okay. Then what will be the split of under patent products versus generic products for TRM and for Archimica? TRM is right now dealing with all the under patent products only. There are no generic products there in the TRM platform. Okay. For Archimica? Archimica, currently we are dealing with the niche APIs. majority of the APIs are the lost the patent time. They are all generic. They're all generic. Okay. Okay. Sir, what would be the sort of targets that you would have set for these companies? The kind of revenue potential that you see for the next few years. Could you spell out something on the same? Obviously, we are looking at the whole integrated business model in the process of building it up. Obviously, we're looking to exceed the current growth rates. Obviously, the key challenge we are gonna do for the next three years internally is actually build a strong platform for aggressive growth going forward. Sir, I guess this question was asked earlier also, but lastly, could you please spell out to what is the kind of CapEx or investment that you would look at for the pharma vertical for the next few years? We are looking at about $10 million-$15 million CapEx for now. Obviously, as we get into these assets and we see larger opportunities, and we look at what we need to build, the CapEx will be optimized in both of the team, and that's what Anand and team will be taking up in the next couple of quarters. $10 million-$15 million per year for the next few years, both TRM and Archimica combined? Right. Yes. Okay. This will exclude the CapEx that you will do in India to build up the capacity for production? This is all inclusive for all three setups. The R&D setup, the TRM setup, and the Archimica setup. All three put together, this is the kind of investment plan we have as of now. As you can imagine, that as we get into these companies, assess the current capacities and utilization and also the pipelines of the molecules at our end, at their end, then we will have a firm up plan on these CapEx. See, fundamentally, the CapEx is going to three. One is looking at capacities based on pipelines, the other is looking at, business capability build out, and the third investment will be going in asset quality and conditions. Thank you. Participants are requested to stick to one question, please. We have our next question from the line of Vishnu Kumar from Spark Capital. Please go ahead. Thanks and congrats for the acquisition, sir. Part of my question was answered, but wanted to understand the size of the pie in terms of opportunity that you're looking with these two businesses. Over a three, five year, how much can we target out of that pie in these two acquisitions, if you could help us understand? Vishnu, that would be best answered by you to be honest. You know, the size of the pie is I think $several million. The percentage of that pie right now is too early for a company of this scale to actually answer in the next three years. I think the pie is big enough for us to build aggressive plans. I think the size of the pie could say more 10 years in the pharma play, which is going to be more than a one trillion dollar industry in the future. Yes. This is a solid runway we are building right now, you know. Solid runway we have built, and now the flight is about to take off now. Understood. Sir, the also one question is that from from a point where we were trying to look at assets which are very, very costly and now we have kind of bought it at relatively substantially at a very good pricing. Just to understand, is there anything like there is general question in the market that how are we able to actually do this at a much lower pricing? Just if you could help us understand on this. Well, not to be fair, I mean, we look, we as you know, we believe evaluating. I mean, that's the tick of the trade. We look at opportunities and actually we're looking at the capabilities to bring them together to create the value. That's the way I would put that for now. Got it. Vishnu, these valuations are different perspective, different ways of looking at it. There is also scalability, there is also investment for scalability of, on these assets. All these aspects need to be looked into. You know, you can't look at valuations with respect to, you know, last year performance. Understood. Thank you. We have our next question from the line of Abhijit Akella from Kotak Securities. Please go ahead. Yeah, good morning, and thank you so much. I have a few points. I'll try to squeeze them into one question, if you'll permit. One is, just for Therachem, is it possible to share with us the, at least the preliminary numbers for FY 2023 in terms of revenues and EBITDA? Second, you know, why are there two entities within Therachem? What exactly is the business that Solis is involved into? I guess it doesn't really generate any revenues at this point in time. The last part is just with regard to the financial aspects of the transaction, if you could help us with, you know, the breakdown between, say, the goodwill, fixed assets, working capital, and also any debt that you might be acquiring as part of the transaction. Thank you so much. Thanks. Thanks, Abhijit. First of all these, 2023 financials are still in preparation, so obviously we cannot right now share with you. As far as in any case, TRM closing is to happen, so you can imagine that these numbers, et cetera, will have to be done only after the closing. Your second question about the break up, obviously in our stock exchange, you know, intimation, we have already mentioned the networks of these targeted companies. It is not very difficult for anyone to work out what is the goodwill part of this. Okay? The working capital part is one, but in case of TRM, that is close to $5 million, and rest is all goodwill and the, you know, customer's contract value. That is what majorly there. In case of Archimica also, we have very clearly articulated or mentioned the numbers of network in in our press release or the stock exchange release. The remaining part is all the goodwill. Got it, sir. That's helpful. Thank you. Just one last clarification. you know, the pharma industry in general has seen a very difficult, FY 2023 after a much better FY 2022 in the aftermath of COVID. you know, is it possible that, I mean, TRM might also have, registered a little bit of a decline in sales, in the preceding year? The product portfolio of TRM or the Archimica are not, you know, COVID specific or COVID-prone portfolio. I'll still ask Anil to elaborate more on this. In fact, you know, right now if you see the little bit data, there are more than 20,000 drugs which are in various pipeline of the development. Out of that, majority of the candidates are in the pre-clinical phase I, phase II, phase III space. This market has immense opportunity right now, and I think this is independent of just kind of scenario what we are talking right of COVID or any other. There is ample scope to continue, and I do believe this is something which is going to persist for years to come. We, we as such, we have not seen any sort of impact coming in because of the COVID in these pipelines. Thank you. We have our next question from the line of Saurabh Kapadia from Sundaram Mutual Fund. Please go ahead. Yeah. Thank you for the opportunity. Sir, in TRM, if you look at FY 2022, there was a sharp jump in revenue. Was it a one-off or is it because of some new commercialization? Secondly, you know, if you can talk about pipeline in long-term context for TRM, has. Thank you. This particular observation, what you said is correct. One of the program which got advanced in the various, you know, clinical space, and hence the need for supply of the quantities were higher. That's why you have seen the spike going in the particular year. As such, there are many programs coming in and, you know, sometimes some programs get advanced, some programs get delayed. We are very hopeful with based on our understanding that this program will be continuing, and there are certain programs which are also going to add during the course of year. We are very hopeful on continuing this trend. Any long-term contracts and, your comment on pipeline of the products. There are certain contracts in place right now with some of the customers, and they are in for the year of one to three years. Okay. Thank you. Thank you. We have our next question from the line of Rajesh Ainod from ITI Limited. Please go ahead. Hello. Yes, we can hear you. Please go ahead. Yeah, thanks for the opportunity. Congrats for the acquisition, sir. The, you know, last part of the question has been asked already. My question was around, you know, R&D strength of these two companies and their complementarity, because, you know, there are CDMO or CRO companies which are operating in U.S., Europe, which typically have a much different cost structure because of, you know, the PhDs, hiring costs over there versus India. What are those kind of synergies which are, you know, possible? Because both kind of companies are there in the market, you know, European companies work with a different. Rajesh, if I can intervene, we are not at all able to hear. Yeah, understand. Really understand what you're saying. Your, your audio is not very clear to us. Yeah. Is it better now? Hello? Yeah. If you can please repeat your question. Yeah. Sir, my question was on, you know, the R&D strength of these companies versus what we also have in India and what kind of synergies or, you know, because the basic premise is that companies which are operating in developed market, they operate, you know, they have a different sort of financial metric versus similar job, jobs done in India where, you know, the financial metrics are improved mainly because of the PhD hiring costs. From capability point of view as well as from this financial point of view, what are the future synergies possible, and what is the current status of, you know, the R&D strength of, at these entities and in, and in India? You know, with the acquired entity right now, there are three user centers. one is in U.S., on is in India, one is in Europe. You know, these three user centers would come in this particular part. There are certain customers, they want development within U.S., certain customers, they want development in Europe, certain customers want development in India. For each area there are specific customers which are available. You know, the center we are building up in Hyderabad is going to be complementary for all the three, you know, platforms. This center is going to be a comprehensive GMP in nature and for this center also we have many people who are right now willing to work with us. I don't see any cost structure is giving us any kind of challenge in these services we are offering right now. In fact, we have a lot of variability. We can offer any model which any customer wants from India or U.S. We have various capabilities, cost leverages, and these combinations will come together to create that unique value offer to the customer to afford, give them the flexibility in terms of capability, knowledge, service, and cost. Yeah. Okay. Sir, in terms of understanding the product profile, you know, you mentioned that it's biologics and complex genetics. Can you please throw some more light on, you know, which are more probable areas which will also be in the gamut where, you know, we'll be targeting? I think, let me tell you the right interpretation is TRM is working with the customers who are dealing with the biologics also. We are supplying building blocks to them. The TRM portfolio as such is not having any biologics part. Thank you. We have our next question from the line of Rohan Gupta from Nuvama. Please go ahead. Yeah. Hi, sir. Good morning, and congratulations on these two acquisitions. Question is on the utilization basis of TRM right now, and we have the facilities in India and also have lab facilities in U.S. What are the current utilization? You mentioned that the TRM is mainly focused more on the under development products. If you can give some kind of revenue visibility which you may have. Under some key molecules which you are working on with the pipeline, and what can be expected over next couple of years from these? Currently, you know, the TRM, as far TRM is concerned, currently we are operating right now at the capacity which is maybe, let's say, 40% or 50% of the current capability. Right now, there are many programs running in, and we are in discussion with many customers that will come in. I don't see capacity or, you know, the right now strength is a constraint for us to take the further business development. Sir, you have some arrangement with the current TRM US team in terms of the under the purchase consideration, where it is a performance-linked $25 million payment has to be paid over next six years. If you can just throw some light on that, what is the performance-linked incentives you're talking about and what are the benefits which are expected? Yeah. Performance is linked to the, you know, pipeline products and their commercialization and what kind of revenue we can, you know, generate out of the pipeline. Basically the, a part of, overall valuation is linked to the future pipeline and its commercialization and revenue generation out of it. Under what circumstances, I mean, if you can give some line that over next six years this is the revenue guaranteed for which you will be paying for $25 million, something can, on some sort of those lines, can you give some numbers, sir? Again, can you please repeat? We missed your question, the second part. Sir, we are saying that over next six years we will be paying them $25 million depending on the performance, means, if they are able to deliver on those products deliverables and all. If they are able to deliver and $25 million will be paid to them, can you bring some quantification or quantify these numbers that will be adding to the revenues or top line for the company over the next five to six years? No quantification of what? Revenue or... I mean, obviously this amount is, you know, linked to the future pipeline and its commercialization. For example, if we are able to generate certain revenue, a certain percentage, I obviously cannot divulge too much details here, but certain percentage of this revenue creation will be shared as the extended valuation to the seller. That is the understanding. Thank you. We have our next question from the line of Sumant Kumar from Motilal Oswal. Please go ahead. Yeah. Sir, the current utilization of TRM is 40% and the margin of TRM is already high in the range of 50%. Can we expect efficiency improvement and the margin profile of the company is going to improve from here? Well, it's a double-edged question. Question is, there's a margin profile. Obviously we are looking to scale up and build the business, right? Yes. you would know typically what is the kind of margin in this business, we are in that range. There are spikes and spurts which will take place because in the initial phase of investment build up capabilities to take it to the next phase. That's the way I would answer. The focus will be on scaling up the business from the current levels rather than- Okay. You know, focusing too much on the margin improvement of the existing products. Okay. What kind of growth we are expecting from this business acquired company? What kind of? Growth we are expecting in next three, four years from this company. We are expecting to more than double this in next three to four years. Yeah, I mean, this is where the combined teams and the management team that we are also inducting will work towards the aggressive business development. You know, CDMO market is growing around 8% to 10%. I can tell you we will be better than the market. That is what I can tell you right now. Okay. Thank you so much, sir. Thank you. We have our next question from the line of Krishan Parwani from JM Financial. Please go ahead. Yeah. Hi, thank you for the opportunity. Congrats on the acquisition. Just two clarifications from my side. Of the Therachem's current product pipeline, how many are going for phase one to, let's say, phase three, drugs, and how many are going for, commercialization, commercialized drugs? The second clarification is like, what sort of timeline do you envisage for this, commercialization of the drugs which are in clinical trials? Two things. Sorry for the. We have some basic idea. We have more detailed ideas, and we're not sure right now we can answer that because we do have certain confidentiality commitments or in those contracts, we need to further study before responding. Yeah. Thank you. Just if I can slide one on the Archimica front. Archimica had been around 10 million EUR, kind of a CapEx over the last three years. How do you see, you know, that benefiting for the Archimica's turnover over the next three years, let's say? Yeah. I mean, this is already reflecting in their current performance. Over last few years, they have improved their performance. Going forward also, I mean, combining the various opportunities that will emerge from our CRO and also, you know, starting materials business in CRO. Many opportunities we expect to also get in the API business coming out of those areas. Yeah, I mean, there are good opportunities and these investments already made and which are also now planned going forward in next couple of years will obviously help us scale this business. Understood. Thank you so much, and all the best. Thank you. Thank you. We have our next question from the line of S Ramesh from Nirmal Bang Equities. Please go ahead. Good morning. Thank you very much. If you can share, what is the kind of R&D expenditure as a% of sales in TRM US consolidated in Archimica? Second is, can we get some split for all the acquired entities together between CDMO and API? In CRO, the contract research is basically R&D expenses. There is no really other kind of a TRM kind of an organization. This time this CapEx is high because we are building up a new research center in Hyderabad, and that is something just investment we are making in research center right now. Does this answer your question, or if you can please re-articulate your question? Just wanted to get a sense in terms of what is the thinking in terms of R&D expenses as a% of revenue, say, over the next two years for the pharma business. Secondly, if you can give us some split in terms of the CDMO and API revenues, either for CRO consolidated and Archimica separately or on a, you know, ballpark basis, all the entities put together. You see this business model is of CRO and contract manufacturing, a part of it. Mm-hmm. There the R&D spend will all depend on what kind of business we are able to generate in these areas because this is not a basic innovation kind of business. You know, this is a services business. The current level of spend is already there. How this will grow and scale from here will also depend on what kind of pipeline we are able to build, what kind of new businesses we are able to build over next three years. Okay. can we get some thoughts on the split between CDMO and API? currently, Archimica's entire is CDMO, and then Archimica is 80%, 20% of the current revenue. That's what the current split is. All CDMO. CDMO. In case of Archimica, more than 20%-25% is CDMO and rest is the niche APIs. Thank you. We have our next question from the line of Yogesh Tiwari from Arihant Capital Markets. Please go ahead. Thank you, sir, for the opportunity. I had one question on Archimica. I understand that they did a CapEx of expansion last year in September. For the last two years, they had revenues of EUR 38 million and EUR 42 million. They have bought the company at EUR 34 million. It looks like a wonderful acquisition. Sir, can you discuss something on the valuation which we had? Is it profitable at the net level? Thank you. I hope you'll appreciate that, on this call we cannot discuss that, what is the rationale for the seller and for the buyer for a particular valuation. As I said earlier, the valuations are not only purely based on the revenue of last year and the profitability of last year. There is also future growth prospects, there is scale-up opportunities and the investment, further investment needed and all that. Keeping in account all these aspects, we found this to be a great opportunity for us to, you know, combine with other assets that we are building and also acquire in terms of TRM, to be able to create this differentiated business model, whereby we can scale up this whole model in a much faster pace than what we would have done by building all this. In that sense, yes, this is, A, a smart acquisition, but of course, time will tell that how we are able to scale it up over a period of time, which is what we are now focusing more on. Thank you, sir. Just a number like, I think so the EBITDA is about EUR 70 million. What would be the net profit for Archimica? As you know, this is a private equity-owned company. They had their own charges, capital charges, this, that. I think to my understanding, the last reported net profit is close to $3 million. Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to management for closing comments. Over to you, sir. Once again, thank you everybody for coming on to this call, and I wish the PI team good luck and the great work to the team done so well to start this beginning. Thanks for all your support. Thank you. Thanks, Mayank. Thanks, everyone. Thank you. On behalf of PI Industries Limited, that concludes the conference call. Thank you for joining us, and you may now disconnect your lines.