Please note that this conference is being recorded. I now hand the conference over to Ms. Nandini Agarwal from Syngene International. Thank you, and over to you. Thank you, and good afternoon to everyone. Thank you for joining us on this call to discuss Syngene's Q1 FY 2025 performance. To discuss the financial and business performance for the period, we have on this call today Mr. Jonathan Hunt, Syngene's Managing Director and Chief Executive Officer, and Mr. Sibaji Biswas, Executive Director and Chief Financial Officer. After the opening remarks, Jonathan and Sibaji will be happy to answer any questions you might have. Before we begin, I would like to caution that comments made during this conference call today will contain certain forward-looking statements and must be viewed in relation to the risks pertaining to the business. The safe harbor clause indicated in the investor presentation also applies to this conference call. The replay of this call will be available for the next few days after the call, and the transcript will be made available. With this, I would now turn the call over to Managing Director and CEO, Mr. Jonathan Hunt. Thank you. Good afternoon, everybody. Thanks for joining us on the call today. I'll start with commenting, I think, on some of the industry dynamics that we think will shape the coming quarters, and then Sibaji will provide a more detailed insight into the financials in his remarks. When we met in April, we set out our guidance for the full year, and that predicted a largely flat H1 to the year with momentum building in the H2, and that view remains unchanged. We continued to track indicators of two key trends: the return of new funding into the U.S. biotech sector and the interest amongst large biopharma clients looking for alternatives to China as they rebalance their supply chains to mitigate potential risks. So let's take a look at each of those. On the biotech front, we saw a positive quarter of new capital flowing into the U.S. biotech sector. It's back and holding at pre-pandemic levels, and I think this predicts for an improving demand environment as that new capital flows through to increase client demand for services and expenditure. It's this dynamic that underpins our view that the H2 of this year and into next year is likely to be a better environment. On the large Biopharma side, we're seeing increased visits by clients as they look for alternatives to China, and it's noticeable that when we talk to these clients, I think the change in the wording of the BIOSECURE Act around the timeline to implementation has lessened the urgency with which they're looking for alternatives, but it hasn't changed the direction of travel. What we're seeing most commonly is that these China switches, as we call them, are setting up pilots across a broad range of services, often placing them with a select short list of suppliers. They then intend to run these comparative pilots through the year and use this as a way of down-selecting to a longer-term partner. And here, I think we've made good progress in the quarter, and I get a sense that Syngene will be winning our fair share of these pilots. Other leading indicators are also turning more positive. Our request for proposals were up almost 50% year-over-year in terms of value in the Q1. Now, admittedly, the Q1 of last year was a little bit of a low point, so it's coming off a low base, but it is the best quarter for RFPs, the best Q1 for RFPs that we've seen in four years. We're also kicking off multiple pilot projects in discovery services, and those have got the potential to scale into larger contracts over time. I believe Syngene's in a good position to capture a fair share of the upturn in biotech spending in the quarters ahead. Turning to the Q4 numbers, revenue from operations was down 2% over the corresponding quarter last year to INR 790 crore. Operating EBITDA was down 20% to INR 170 crore, and reported profit after tax was down 19% to INR 76 crore. This is coherent with our guidance and the commentary that we gave you at the full-year results. While we've been very focused on clients, we are in an innovation-based industry, and technology's constantly evolving, so we've got to continue to keep a close eye on the leading edge of technology and leading edge of capabilities. Recently, we've launched a protein production platform that leverages advanced cell line and transposon-based technology. Combining this with our existing capabilities, we can deliver end-to-end cell line development options faster, and I think that's a real benefit to customers. A good step forward technologically in our biologics business there. Let me summarize before handing over to Sibaji. Key leading indicators are more encouraging. The biotech funding is showing signs of a rebound. Our assumption is that this should translate into more outsourced projects from biotech as the year progresses. In the large-cap biopharma segment, there's a noticeable shift as companies seek to diversify their operations away from China to mitigate geopolitical and geographical risks. For now, this is playing out in increased client visits and audits, as well as a rising number of pilot projects, and I think it's a healthy indicator for the H2 of the year. With these more positive indicators in place and reflecting in the increased flow of interest that we're seeing, the long-term outlook for Syngene in the broader sector, I think, remains optimistic. So with that, let me hand over to Sibaji. Thank you, Jonathan, and a very good afternoon to everyone. As you have seen, revenue from operations came in broadly flat, as expected, for the Q1. Jonathan has outlined the dynamics, so I won't repeat them here. We believe that revenue is on a positive trend, with momentum expected to build in the H2 of the year. Revenue from operations for the quarter was down 2% versus last year, and in constant currency terms, down 4%. The dedicated centers delivered sustained performance during the quarter, and biologics manufacturing continued its growth momentum driven by both commercial and clinical-scale projects. Discovery services showed a resilient performance. However, it was impacted by the biotech funding issues mentioned earlier. Small molecule development and manufacturing services remained steady, with repeat business from existing customers and new opportunities at early stage from both new and existing customers. Turning to costs, raw materials accounted for close to 30% of revenue from operations, compared with 28% in the Q1 last year. The increase is due to the change in revenue mix, with a higher proportion of revenue from development and manufacturing services. This is a business which inherently carries higher material costs as a percentage of revenue. With a more balanced mix of revenue growth going into the year, we expect the full-year raw material costs to be around 28%, as highlighted earlier. Other direct costs, primarily comprising power and utility expenses, declined by 8% year-over-year, attributed to an increase in share of green energy consumption compared to the previous year, and deployment of energy efficiency measures in line with our P3 program. Employee expenses increased by 10% year-on-year, driven by investments in the organization for building commercial and technical capabilities and salary increments during the year, partially offset by a slightly lower headcount as we rebalanced our hiring plan to meet client needs. With the aim of improving productivity and delivery effectiveness, we continue to invest in automation and digitization programs across the scientific and enterprise domains. We also invested in many parts of our business to ensure that we have ready capacity for our clients. Our operating expenses increased by 3% year-on-year, reflecting this initiative. Overall operating costs, that is, all operating expenses, excluding raw materials, were in line with the run rate in the Q4 and about 7% higher compared to the Q1 last year. The decrease in revenue, combined with the increase in costs I just mentioned, resulted in operating EBITDA margins at 22% in the Q1 versus 26% in the same period last year. We believe these investments are growth drivers that will deliver operating leverage when revenue growth returns as expected in the H2 of the year. EBIT from operations was at INR 63 crore, lower year-on-year as depreciation increased to INR 107 crore compared to INR 102 crore in the same period last year. The 5% increase in depreciation is mainly due to new leases and infrastructure coming online in the last year. We continue to maintain a strong balance sheet, which enables us to effectively navigate through industry cycles. After meeting our CAPEX spending for the quarter, we have net cash of $108 million as of June 2024, which is at a similar level to March 2024. During the last year, we reduced debt on our books by $55 million, primarily due to repayment of $50 million of ECB loans. We also fully financed our acquisition of the biologics manufacturing facility from our internal cash. All this had reduced the cash balance and hence the interest income that we had in the P&L. The underlying interest expenses also reduced due to lower debt, but the reported interest expense is higher on account of the finance component of the new leases undertaken during the year. The effective tax rate for the quarter was lower at 21% versus 24% in the same quarter last year due to the change in business mix and the lower interest income. We expect the effective tax rate for the full year to be around 22%-23%. Overall profit after tax, before exceptional items, was INR 55 crore. We received INR 32 crore as the final settlement from a past insurance claim, which has been accounted as exceptional income net of tax. With that, the reported PAT came in at INR 76 crore, down 19% year-on-year. As indicated at the start of the year, the long-term market indicators are positive, and our plan is to continue to make strategic investments in capabilities that make us future-ready. We have incurred CAPEX of around $12 million during the quarter, including upgrading the biologics manufacturing facility acquired in financial year 2024, which is on track to start operations in the H2 of financial year 2025. Finally, let me say a few words about the guidance. In the current financial year, our expectation of improving business growth from the H2 remains unchanged, and we are on track to hit the guidance range that we provided last quarter. We expect the EBITDA margin to be in the high 20s for the full year, that is similar to last year, and implicit within this is the EBITDA margin, with the fact that EBITDA margin will improve sequentially as the revenue grows through the quarters. PAT growth for the full year is expected to be in single digits, as previously guided. With that, I suggest that we open for questions. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We'll take a first question from the line of Surya Patra from PhillipCapital (India) Pvt Ltd. Please go ahead. Yeah, thanks for the opportunity, sir. My first question is on the margins. In fact, in the opening remark, you have indicated that there is an elevated portion of the manufacturing activity, and hence there could be a decline and because of that, there is a decline in the gross margin this quarter. So is it linked to the Mangalore facility utilization and hence improved activities there, and that impacted the margin? If that is the case, could you share what is the kind of utilization that we would be currently having for the Mangalore facility right now? Well, it's a stupid question. I'll let Sibaji talk about the margins. The quick answer is no, it's not related to Mangalore, and no, we won't give you facility-level breakup of utilization. Just as a matter of policy in the way we communicate, 2.5 million sq ft of lab space, if we start the precedent of breaking it down by operating unit, I think our analyst calls might go on for days. But give you a general sense, what's driving it, I think, there is the switch, particularly in biologics, so that our overall CDMO strategy, remember, it's not a small molecule strategy. It's a small molecule, large molecule integrated CDMO strategy. Clearly, the large molecule business is leading the way. We're really quite happy with the progress we're making there. It triggered us last year to acquire the site from Stelis because we were running out of headroom for growth in our biologics with fully sold-out capacity for the coming years. And that prompted us to move quickly to switch from an organic build-out that we plan to do in the next couple of years and bring it forward by a couple of years through an acquisition. So CDMO overall is doing pretty well. It could always do better, but we're fairly happy with the progress, and it's led by the biologics piece. Anything else you'd say, Sibaji? You were on the dot. But Surya, what I said is year-on-year for the same quarter. So as you know, over the last year, our share of development and manufacturing business has increased, and development and manufacturing business carries a higher raw material cost. Hence, you have seen a bit of a shift in the raw material. Yeah, so that's the only thing. Yeah. Sure, sir. Okay. My second point is regarding the facility that has been acquired from Stelis. So post-commercialization, which you said that, okay, possibly that will take around 12 months' time after the acquisition completion to be commercialized. So once it is commercialized, what is the gestation period one should think about for really seeing the number implication to the overall financials of Syngene? I mean, I wanted to. Sure, question. Yeah. Just if I had, sir, I just wanted to understand what preparatory timeline that would be required once the facility will be capitalized, and what time that would be required to really see the benefit of that facility in our numbers? Yeah, no, I get the premise of the question. If you strip all of the detail out of the question, it's essentially asking what is our sales cycle for a new plant. The answer to that, I think, is unknowable. Yeah, no, I get it. It's just I can't predict we're out there, and the steps we have to go through. Between now and the end of the financial year, we will have made the operating changes, upgraded the facilities, moved pieces of equipment around, replumbed, HVAC vents, whatever we need to do to get it to how we want it to be. We will have been through a qualification validation process, so we will have checked that everything's working well, is up to standard, we'll have done all of the environmental stuff that you've got to do, and then it will be ready to show the first clients as, "This is the plant that you could use." That will happen between now and the end of the year. And then you're into a sales cycle. And we're confident that there is demand in the marketplace, that it shows well. It's a facility that, when you look at it and go around it, looks good, looks well-designed, has some good equipment in there. So I think it's attractive to the eye when clients come and audit it. And after that, it's just selling. And I'm not going to try and predict in which month, which quarter, which client will do whatever. Yeah? No, no. I'll remind you that. Yeah. Sorry. Carry on, Surya. Yeah, please, sir. So I just wanted to ask, so the business development activity for the Stelis plant will start post the capitalization of the asset, or it is already active on the plant? No. I mean, you can soft sell. You can bring it to the client's attention. But in reality, for this type of outsourcing, one of the key buying steps for any client is sending in an audit team, walking literally around the facility and checking it meets their standards. So you've got that step to go through anyway in any biologics. Well, actually, it's just inherent in all manufacturing in the industry. So until we've finished validating it, you can't really. There's not a lot of benefit in showing clients and their audit teams because they don't have to come back anyway once post the validation. Sure. Sure. J ust last one from my side. Regarding the export trend, see, whether you have found out any kind of challenge because of the availability of a container or anything which would have impacted your exports in this current quarter, or you have not faced anything of that sort? No, nothing. But then, to be fair, we're not a business that really exports anything by container ship in the main. Our research services business I'm going to oversimplify it to illustrate the point exports its work product by email and digitally. We create new knowledge. There's not a lot of physical movement of goods. And if there is, you're talking about FedEx and DHL-type sized parcels. We send things around in gram scales or micrograms. And even on the manufacturing side, it's still air freighted around the world. Even for the biologics. I'm not sure I got that right today. Yeah, yeah. Yeah. It's funny. It's one of those things about pharma. You have this image that everything looks like the inside of a steel plant or a steel foundry, that it's big, heavy industry. Actually, incredibly sophisticated equipment looks like a room full of photocopiers, and then we DHL things around the world. Yeah. Air Freights are our most common way of moving goods around the world. Sure, sir. Yeah. Thank you. Wish you all the best. Thank you. Thank you. Thank you. Before we take the next question, we'd like to remind participants to press star and one to ask a question. Next question is from the line of Shyam Srinivasan from Goldman Sachs. Please go ahead. Yeah. Good afternoon, and thank you for taking my question. Just the first one is on the comment around dedicated centers and biologic manufacturing services reporting steady growth. So just want to get some context around dedicated centers at this point of time. Around the same time, you reported, I think, quarter one, sorry, quarter four. Bristol also announced a large cut in terms of reduction. So is there something that we need to be mindful of when we look at the dedicated center business, especially with Bristol around? Yeah. I mean, I need to be careful in my comments. I don't want to be seen to be misspeaking or giving a view on BMS's business and business strategy. So you do need to triangulate back with their IR team on their policy. But for us, in many ways, they're an organization that continues to globalize, that continues to seek new innovation. And I think they've been quite clear, if you look at their statements from their management team and their CFO, that they are looking to drive cost savings across their operations. And we already do that for them. I mean, the relative cost of the things that we do with BMS in partnership is more cost-efficient for them than doing it in other parts of the world. It's not the only reason they do it. It's also because the team that they've got here in India is spectacularly good scientifically. They really do drive innovation and high science. So we're very proud of our Syngene colleagues working at BMS here in India, and the local BMS management team do a really good job driving science forward. So I get the premise of the question. I don't think we'd ever be complacent about that relationship. It's a particularly important one for us. It's been mutually beneficial for both companies. But in the environment where they're looking to create operating leverage and drive cost out of their business, I think we've got things we can do to help them. Jonathan, I remember that. Did that get to the heart of your question? Yeah, I did get, but just one follow-up. I remember at the time of renewing the last one, if I remember, some of the wordings was it envisaged 40% more scientists, I think additional 50,000 sq ft capacity. So we should assume that some of that. Yeah, we've gone over that. Yeah. Okay. All of that has also been done. Yeah, I think we're already at that. We've gone past that. Yeah. Understood. That's helpful. Second question is just on the biomanufacturing piece. I was under the impression that it's Librela largely. And how have we got growth? I'm assuming Librela remains at the same $50 million per year annual run rate. So are we doing other things other than ex-Librela? Yeah, we are doing. Yeah. Yeah, yeah. We have other clients beyond Zoetis, and we make other things, both at clinical and other scales beyond Librela. And actually, one of the bits that we've done, operational efficiency, tighter operations, better yield production is allowing us to create some hidden capacity, and that then has helped us during the quarter. And of course, then we're not that far away from the new plant coming online towards the end of this year where we'll have more capacity to take to the market. Yeah, Jonathan, just again, clarification. So when you said very little headroom in our bio manufacturing in the original 8K plant, we still were able to squeeze out things to drive this growth. That's how I should interpret it, right? That's a good interpretation. It's one of the truisms of running a plant. The busier you are, the more creative people get in operational delivery. It's like anything. If you train regularly, you get good at it. I think the team have done a really nice job over the last six months with finding some hidden capacity by being more operationally efficient. Understood. Thank you and all the best. Thank you. Thank you. We have a next question from the line of Udit Bokaria from Catamaran. Please go ahead. Hello. Yeah, thanks for taking my question. Sir, if you can just highlight on your. Sorry, we are not able to hear you clearly. Hello? Can you use your hands a bit more, please? Yeah, I'm using my hands a bit more. Yeah, that's better. Yeah, go ahead, please. Yeah. I just wanted to understand if you can share what has been the client response to the new platform and how should we think about how big or how many inquiries can we expect because of this development? A bit too early to say. That's why I put it in the press release, is to put it in the shop window. It's nice technology. We offer, I think, a very competitive gene to GMP or vials to trials is the sort of phraseology that people use. It's about getting biotech clients from their idea to a product they can take into clinical testing as quickly as possible. And this technological platform just shaves some time out of that. And in a competitive world, that's beneficial. But we'll let you know how that progresses in the coming quarters. Some of your partnerships which you had announced last year, like with Ginkgo Bioworks or even with ERS Genomics, how has that helped you either win more share with big pharma or attract more number of biotech companies? If you can just highlight that. What was the first company that you said? Oh, you had an alliance with Ginkgo Bioworks, right? No. Not that I'm aware of. I don't remember making an announcement on that. Got it. Mr. Bokaria? Yeah. Yeah, thank you. That's it. Okay. Thank you. If you've misremembered, that's okay. If I've misremembered, we'll drop you a note after. No, I think I had, yeah, seen you in one of your press releases as well. And I think one other thing, I think in your annual report, also, you have mentioned that you are also developing some performance and safety materials for EV. So if you can just highlight how did this opportunity came up and how should one think about other new industries which Syngene is targeting. Oh, okay. Good. Yeah, I don't think it's transformational to the investment story. There's a simple way of putting it. So it's some good science, and we're very happy where we've got capability to help in other industries. The core of the business is human life sciences, innovations in medicines for humans. And I think the other bit that we've seen a lot of growth is exactly the same skills applied in the animal health sector. And then beyond that, we're delighted with the other smaller segments that we serve. But those first two, human health and animal health, really do drive the majority of the business. Got it. Okay. Thanks a lot. Thank you. Thank you. We have a next question from the line of Harsh Bhatia from Bandhan AMC. Please go ahead. Yeah, thank you. Am I, audioble. Yes, you are. Yeah, thanks. Just in terms of the guidance, in terms of the earlier commentary, I think you mentioned EBITDA margins towards high 20s%. If I'm not wrong, Q4, we had mentioned that the EBITDA margins would largely be steady on an adjusted basis. So is there some level of cut to the EBITDA margin guidance, probably more to do with the research aspect going down, or am I missing something here? So this is Sibaji. Yeah. So what we also said is that the full year EBITDA margin is expected to be very similar to the previous year. So there is no cut. That's what we said in the Q1 as well. And essentially, as the year progresses quarter by quarter, we expect to see the EBITDA margin improving on an average, giving high 20s, which was also the EBITDA margin of the last year. So very similar to last year, no change in position over there. Yeah. Harsh, is that clear? So just so nobody misunderstands, no change in any element of the guidance from what we gave at the beginning of the year. And at the end of the Q1, we're still saying that's our expected outlook, whether it be on revenue. The revenue range remains the same, and then the margin through to PAT, the guidance remains the same. Sure. That's very helpful. Thank you. Thank you. Thank you. Ladies and gentlemen, we'll take that as last question for today. I now hand the conference over to Ms. Nandini Agarwal from Syngene International for closing comments. Over to you. Thank you, everybody, for joining today's call. If you have any other further queries, please reach out to us, and we'll be happy to help you. Well, have a good day, and thanks once again. Thank you. On behalf of Syngene International Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line.