Akums Drugs and Pharmaceuticals (NSE:AKUMS) Q1 2027 Earnings Call

0:01 Good day, ladies and gentlemen. Welcome to the Akums Drugs and Pharmaceuticals Q1 FY 'twenty seven Earnings Conference Call. As a reminder, all participant lines will be in the listen only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to Mr. Umeish Ladha. Thank you, and over to you, sir. Good afternoon, everyone. And on behalf of Ambit Capital, I thank the management of Akums Drugs and Pharmaceuticals for the opportunity to host their q one FY twenty seven earnings conference call.

0:53 Joining from the management today, we have mister Sanjeev Jain, managing director mister Sandeep Jain, managing director mister Sumit Sur, CFO and mister Sahil Maheshwari, head strategy. We now begin with opening remarks from the management, post which the forum will be open for question and answer session. Thank you, and over to you, Ankit, sir. Thank you, Omesh, for the introduction. Good afternoon, everyone, and welcome to Akums Q1 FY 'twenty seven earnings call. I am Ankit Jain, and I head Investor Relations at Akums Drugs and Pharmaceuticals Limited. I will commence with a standard disclaimer that any discussion on today's call might include certain forward looking statements, which are predictions or projections of future events. Our business faces several risks and uncertainties that could cause our results to differ materially from what is expressed or implied in such statements.

1:41 At Akums, we do not undertake any obligation to publicly update any forward looking statements, whether as a result of new information, future events or otherwise. I hope you would have had the opportunity to go through our financial reviews and reviewed our investor presentation that was shared on Saturday. I would now like to hand over to our Managing Director, Mr. Sandeep Jain, to discuss our performance. Thank you. Namaste, everyone, and thank you for joining us today for our Q1 FY 'twenty seven earnings call. With Q1 FY 'twenty seven, we have begun FY 'twenty seven on a strong and encouraging note. We registered a healthy revenue growth of over 13% with EBITDA increasing by more than 30%. The growth was primarily led by CDMO segment characterized by double digit volume growth along with improvement in API prices.

2:32 The consistent performance of CDMO showcases healthy demand environment as well as our clients. Trust in Akums as the preferred manufacturing partners. Marketing segments, domestic as well as exports saw muted quarterly performances with multiple initiatives underway. We are confident of these segments returning to growth path in coming quarters. Our API and Trade Generics segments performed in line with prior guidance, with Zambia order to likely reflect during current financial year. Akums is well placed to deliver a robust operating performance during FY 2027. On July 23, we announced the acquisition of Auriflame India's manufacturing business.

3:19 The transaction covers two manufacturing facilities, one at Roorkee, Uttarakhand and other one at Noida, Uttar Pradesh, along with a leased warehouse situated at Noida, Uttar Pradesh. With the acquisition, we expand our manufacturing footprint in skincare, cosmetics and wellness products. Manufacturing, this is in line with our strategy of tapping into niche formulations to improve our positions among existing as well as for prospective clients and augment our margins. Coming to operating performances for our quarter, CDMO once again delivered a healthy top line growth of over 18% aided by both volume growth and improvement in API prices.

4:05 API segment continued on its journey towards becoming EBITDA positive as higher share of non CFA products led to better gross margin. The Trade Generics segment remained EBITDA positive during the quarter. Akumantis, our domestic branded formulation segment, restarted its growth journey with a healthy 7% revenue growth during the quarter. Margins were impacted due to increase in employee spend. We expected improved performance from the segment from quarter three onwards. Our international rendered formulation business had a muted quarter but is expected to return to growth as we remain confident on the structural attractiveness of our chosen geographies. I shall now request our CFO, Mr. Sumeet Suh to take you through the detailed financials for the quarter. Over to you, Mr. Sumeet.

4:59 Thank you, sir. Thank you, Sandeep ji. Good afternoon, everyone. I would now take you through the financial highlights for the quarter ended 06/30/2026. Our operating revenues stood at $11.67 crore, an increase of 13.9% year on year. Quarter one FY 'twenty six, the revenue was INR $10.24 crore and increasing 0.8% quarter on quarter. Quarter four FY 'twenty six, our revenue was INR $11.58 crores. The operating EBITDA for the quarter was INR 175 crores, an increase of 35.4% year on year. Quarter one FY 'twenty six, our EBITDA was 129 crores and 15.1% quarter on quarter. Q4 FY 'twenty six, our EBITDA was INR 152 crores.

5:52 Margins were robust at 15%, improving two thirty basis points year on year. Quarter one FY 'twenty six, we were at twelve point six percent and one hundred and eighty seven basis point quarter on quarter. On Q4 FY 'twenty six, we were at 13.1. The EBITDA, including other income, stood at INR $20.05 crores, increasing 31.7% year on year. Quarter one FY 'twenty six, we were at 156 crores and increasing 9.6% quarter on quarter. Quarter four FY 'twenty six, we were at 187 crores. EBITDA margins stood at 17.1%, increasing two thirty one basis points.

6:41 Year on year, Q1 FY 'twenty six, we were at 14.8% and quarter on quarter Q4 'twenty six, we were at 15.7. The PAT of the company stood at INR 101 crores, an increase of 56.1% year on year. We were at INR 26 to INR 55 crores on quarter one FY 'twenty six and increasing 24.1% quarter on quarter. Q4 'twenty six, we stood at 81 crores. If we were to look at the various segments and their performance, if we start with the CDMO, the revenue stood at INR $9.64 crores, increase of 18.6% year on year. We were at INR $8.13 crores Q1 FY 'twenty six, an increase of 1.3% quarter on quarter. Q4 FY 'twenty six, we were at INR $9.52 crores.

7:36 Revenue growth was driven by healthy volume growth and rebound in API prices. In Q2 as well, API prices seem to be on an increasing trend. EBITDA for the quarter stood at INR 163 crores, an increase of 36.8% year on year. Quarter one FY 'twenty six, it stood at 119 crores, an increase of 19% quarter on quarter. FY 'twenty six, it was INR 137 crores. The margin was further aided by improved capacity utilization. Domestic branded formulation stood at INR 115 crores, an increase of 7.3% year on year and an increase of 12.9 quarter on quarter. EBITDA for the quarter was INR 12 crore, a decline of 25.4% year on year and a decrease of 46.5% quarter on quarter.

8:37 For the International Branded Formulation business, revenue stood at 35 crore, a decline of 1.5%. At Q1 of 'twenty six, we were at INR 35 crore and a decline of 3.6% quarter on quarter. Q4 FY 'twenty six, the revenue stood at INR 36 crore. EBITDA for the quarter stood at INR 6.9 crore, a decline of 14.4% year on year and a decline of 31% quarter on quarter. APA revenue stood at INR 32 crores, a decline of 29.7% year on year. Q1 FY 'twenty six, it was INR 45 crore and a decline of 22.3% quarter on quarter. Q4 'twenty six, the revenue stood at INR 41 crore. EBITDA for the quarter was at minus INR 4 crore. The losses were lower than Q1 FY 'twenty six, which stood at minus INR 6 crore as well as Q4 FY 'twenty six, which stood at minus INR 12 crores, driven this was largely driven by an increase of non CEVA products in our overall portfolio.

9:48 Trade generic business stood at INR 21 crore, a decrease of 9.5% year on year and a decrease of 23.4% quarter on quarter. EBITDA continued to remain at breakeven for the second quarter in a row. It was it is generally higher than the breakeven of INR 0.1 crore compared to minus INR 5 crore quarter one FY 'twenty six and INR 1.1 crore in quarter four FY 'twenty six. Our balance sheet continues to remain very healthy with a cash surplus of INR $16.16 crores. The operating cash flow for the company for the quarter one stood at INR 65 crores. This concludes the financial highlights for the quarter. I would request the moderator to open the forum for the question and answer session. Thank you, everyone.

10:39 Thank you very much. We will now begin with the question and answer and one on their touch tone phone. 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. The first question is from the line of Vivek Agarwal from Citigroup. On the set of numbers. First, on the CDMO segment, is it possible if you then highlight how to think overall growth in terms of volume and value this year as well as the next year? And second, if you can also give some color as well as the margins are concerned.

11:34 Sure. So hello, everyone. This is Sahil. Vivek, so look at the volumes for q two, right? So the volumes also look healthy in high teens, at least for this quarter. As the momentum continues, we can update how the rest of the year also goes. But whatever visibility we have today, Q2 also looks extremely encouraging. APA prices, they are volatile, right? But at this point in time, they are volatile moving upwards. Practically, if you look at it, Q2 also looks steady, and we expect to end this year as well on a good note. Understood. Any color on the margin trajectory?

12:23 Margins are expected to remain in similar levels, right? So we have always guided for a 14% to 15% margin. And obviously, as we've always discussed, it's difficult to rate the business quarterly. But overall, at a annual level, we expect that the margin should remain in the 40 to 50. And given q one has been strong, we can incline towards the above bracket of it. Understood. The q one margins are a bit higher side, and this is a kind of operation side. So as I said, the price of the API were also high. And if you remember q four, we also had built some inventory to protect others. Right? So these are strategy calls we took, which helped us secure our margins.

13:10 Understood. And lastly, if can help us understand, Fahil, part of the initiatives that you are taking in the band aid and really the domestic and international formation? And how to look at the growth trajectory in these markets as well? So quickly, I'll tap both of these segments. So first is domestic branded acumentis. So as was mentioned in the initial note, we have added almost 200 people in our field force to tap through adjacent headquarters, which are of importance where we can tap some growth, right? So the focus here remains how do we expand our presence into prescription business. The focus still remains on our key performing therapies, which is gynecology, cardiology as well as pediatrics, and we also have presence in orthopaedics and derma, which are follow-up, Right? So that remains our focus within the humanities business, and we are very positive that over the next two, three years, this will be a key segment for the company, both in terms of top line as well as the profitability.

14:19 On UMOSOS, again, while this quarter was muted, we see good growth orders in our coming quarters, right? So there are strategies which we are taking are twofold. One is while we say we are present in 60 plus geographies, which are our focus or whatever you call them, these markets, which we have to drill down, right? So there are few set of markets which we have discussed that these are focused markets where most of our time, energy and resources will go. And secondly, the product portfolio as well. So we are filing niche first to launch products in various markets, which will help us build sticky, high margin businesses. Understood. And what exactly has impacted growth of these segments in this quarter?

15:12 So Akums Drugs, if you look at top line growth was there, but bottom line was not there given most of it, the additional EBITDA drain that we had in Q1 was largely on account of. So almost 200 field growth, right? So that's almost 15% increase in our field force, right? So in the initial quarter, as you rightly understand, you don't generate PCB amount of, right? So that was a drain on our EBITDA. On Unosul, that was one quarter where we saw limited, but Q2, Q3 onwards, we'll have the growth back on the line. Okay. Thank you. Thank you guys so much. Questions, please. So next question we have from Puja. Hello, sir. I wanted to ask that with the IPM growth accelerating, what is your outlook on the volume growth for FY 'twenty seven?

16:10 So, Puchar, thanks for the question. So if you recollect quarter three of last year, quarter four of last year, then quarter one of this year, we have seen almost high teens of volume growth, right? Q2 also looks strong at high teens, right? While the volume growth in the item has been in the range of 2%, 3% or something, plus the new launches, right? So for us, this has always been the key driver for our businesses and particularly over the last one year, this has been the key lever for our growth. While this could be a period where we have sizable volume growth, but we remain confident that our volume growth will at least be double digits in the coming quarters. The next question is from the line of Anjal Maheshwari from Nareedi Investment.

17:06 Hi. I just had one question on your domestic growth side. So can you give us a mix of how much was the volume growth and how much is the value growth mix? And also, are we planning any price increases for our domestic business this year? So the growth has been driven by a mix of new product launches, price growth as well as volume, right? So given the growth is only 7% odd, right? So all three have contributed their bits to this top line growth. And as far as price growth is concerned, we've already taken price growth, and this will also be reflected as we move on this quarter. Sir, is it possible to quantify the numbers?

17:55 No. The next question is from the line of Sangeetha from Cogito. Sangeeta, please go ahead. Hello. This is Sangeeta's partner, Andre. First of all, congratulations for a great set of numbers. My first question was on API. This is a question I keep asking. Is there a time frame within which we will evaluate whether we want to continue with this business? That's my first question. So So the management is fully confident, right? So this is a business we have been investing for over three, four years now.

18:48 The fruits of it are very visible as we speak, right? So the quarterly losses have been gradually coming down. So as far as we speak, as of now, we are fully into this business. Our CEFA business, we have been able to come out of the low margin products and as well as increase our basket of non CEFA products, including linezolid, Montelukast and so on, which are helping us improve our margins, right. So I think at this point in time, it's not a question of whether we make a U-turn from here or not, it is how do we improve the profitability and then scale this business into a profitable venture. Okay. Just what I'd like to give some feedback as a minority shareholder that as a minority shareholder, you would be delighted if you actually got rid of this business. You have an absolutely outstanding CDMAO business and if you and you have a lot of traction in the exports business as well.

19:44 If you were to focus on that, it would delight us. Just a comment that I wanted to So perfect. Therefore, I think we work in the best interest within the company, right, being a minority or a majority, we take decisions which are best for the company in terms of capital allocation as well as management bandwidth. Right. As far as the Europe and Zambia business is concerned, I think you had given guidance of 15 to 17% EBITDA margins on Zambia. Now do you have any actual numbers to share with us in terms of the EBITDA margins? And is there any updated margin guidance that you can give us on the European business? Rightly, on both the Zambia as well as Europe, so these will be margins which are similar, maybe that higher than in the higher teens compared to our current CDMO business, right?

20:39 So that's what we can speak as of now. Zambia is something we expect in the H2 that we'll deliver for this fiscal, the $25,000,000 which will roughly translate to almost INR $2.40 odd crores in our revenue. And similar in the next financial year as well. And within the next financial year, we will kick start our European business as well, which will support of these businesses will uplift the corporate margins. Okay. And as far as the capacity utilization strategy is concerned, you've always invested in a lot of capacity and you believe in having a lot of spare capacity. Having said that, your utilization has gone up in the previous quarter. So going forward, how what is your strategy going to be like? Can we look forward to better capacity utilization?

21:30 Or are you going to continue with your strategy but having a lot of spare capacity because that gives you a competitive edge rewards? So our style has always remained to be prepared for market opportunities, right? If you really look at Q2 was a weak volume quarter last year. And then Q3, we suddenly had almost a high teens 20% odd volume growth, which was again seen in quarter four, again seen in quarter one, right? So our spare capacity was of a real help, right? And as we've always said, we could move up to 55%, fifty eight sixty odd percent as our total peak utilization. We have already we are already at 50 odd percent, right? So the strategy remains given there's a continued focus on better quality drugs in the market. There are increasing opportunities of volume growth. We are in process of further expanding our capacity.

22:29 Right. And last time we spoke about the need to recruit certain amount of senior talent. So where are we on that front in either in terms of actually having people come on board or a work in progress in terms of senior talent being being onboarded? So so senior talent, I don't know which conversation last time, but senior talent, the company today is very well run by professionals across all domains, right, from quality, R and D, business development and so on, right. So there is always a need in an organization to bring in fresh blood, but as of now, given you could see in our financial results, there is ample leadership and talent which is there and rightly so we stem a lot into our homegrown leadership as well.

23:23 So we are fully ready. You've seen orders across Zambia, across Europe, across domestic volume growth sites across all fronts. We have great industry talent, which is still with us. Last time we spoke about the fact that a lot of your people are about 12 class parts, right? And that there is perhaps a need to to to attract and more educated and more experienced and more senior talent. So that is the context in which I was making this I don't think I don't think that it it kind of a conversation had ever happened. We do have all and farms, PhDs, doctorates, and you will find that we are having, say, best percentage of pharmaceutical graduates and postgraduates you compare it with the rest of the industry.

24:15 Okay. Thank you. I don't think where the conversation has came. This is also feedback that we've been on a one on one with someone. And Mhmm. This is some feedback that has also been given to us by some of the ex employees. So that's why I'm taking the liberty liberty of sharing this with you. Sure. Sure. Sure. You can you can ask anything, but we do have lots of PhDs and MPhDs MPhDs. All doctorates are there. Okay. Okay. Thank you. Thank you very much. And all the heads are from top industries, like Doctor. Radhi's son or like that. Right. Right. Okay. Thank you. Thank you. You. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants, please limit your questions to two per participant.

25:07 I repeat, The next question is from the line of Bhavin Chedda from Enam Holdings. Congrats to the management team for a strong growth numbers. Sir, the Zambia sales were supposed to start from Q2 onwards. So has that started? So I think we always maintained the FI, which is here, right? So it will likely be in Q3 and maybe some parts in Q4. As we speak, we are already in advanced stages where we have agreed upon the volumes and the prices with the government over there of almost 100 plus products that we were supplying in Zambia.

25:56 So that is completely on track and this fiscal will recognize the revenue. Okay. And on the overall net cash number you mentioned on the call was around INR 1,600 crores or that was the cash That was net of debt, right, 1,600 crores? Yes. That's net of debt. You. The next question is from the line of Praveen Jayaraman from Aventispark Institutional Equities. Please go ahead. Hello. Good afternoon, sir. Am I audible? Yes. Yes. Yes. Thanks for the opportunity, and congratulations on the good set of the number. Sir, can you explain all the acquisition which we have done recently, whether it's a capability acquisition or a capacity acquisition, what what we are seeing there and how it's going to add to us?

26:56 Sure. So the overall... If you look at the overall style of our acquisition, it's always been to enter into novel niche formulations. Right? So cosmetics, we have already been doing for for over a decade now. Our plan five is devoted and dedicated to cosmeceuticals, which has good profitability as well as we were almost at peak utilization. Right? So the acquisition rationale behind this is to expand our capacities into the skincare cosmetic as well as this will enable us to venture out into the color cosmetics as well, which is a fast growing space. So you're the strength and the mode that Akums today has this formulation R and D, right? So we'll build onto this to tap to additional niche market within the cosmoceuticals this will help us expand our business in that area as well. While this whole PPC market is growing rapidly, our aim remains how can we serve markets which add meaning to our top line and bottom line.

28:10 Okay, on the last participant, you said the capacity utilization was already around 50%, and we can maximum go up to 55%. With this European and Zambian orders coming in, so we would we can see some increase in capital utilization going forward. So would we be resorting this low margin profile orders to subcontracting? Or how are we planning to optimize the orders going forward, sir, with us already reaching 50% utilization? So there is no concept of subcontracting, honestly. We are in the business of delivering manufacturing volume to the clients, obviously. While there would be some chunk of portfolio which would be low margin, but there is no rationalization assets, right, if you really look at today the gross margins are well above 40% and you don't really wish to lose any of them. The business you do with a lot of customers is through a basket approach as well, right? So we are in the process of setting up one more facility in Banti, which will go live in the almost at the end of this financial year itself, which will significantly boost our oral manufacturing capabilities, right?

29:19 Right. So what would be the CapEx policy? So we are still discussing as we go live, we'll update you with it. Okay. So we are adding one more facility in oral, and we are not resorting to be subcontracting or Okay. Thanks for that, sir. Thank you, sir. That is for sure. Thank you. The next question is from the line of from BBD Asset Managers LLP. Please go ahead. Thank you for the opportunity, sir, and congratulations for the fantastic set of performance in CDMO business. Sir, my question is that we have increased our gross margin by 1.5%. Can you quantify how much is due to value addition that we are going in high product high value products and how much is due to inventory gains?

30:12 So very limited would be of inventory gains, but most of it is largely through high value products being getting added. Okay. So this kind of gross margin is sustainable going forward as minus 0.5 Yes. That's the expectation also within the overall corporate gross margin. There have also been a positive from the API gross margin. So API, we used to operate last year at almost 90% plus gross margins, but in this quarter, we are almost at 75% gross margin. So this has also been a positive and obviously CDMO is the one which is thought there is inching forward. Okay. And sir, we have done good work in API where our EBITDA is reducing month on month basis. So is it expected going forward or there is any seasonality in there?

31:07 There's no seasonality. If you at it two quarters, we have been able to do it. This quarter as well be completely in control of it. So this is expected to gradually come down and we should achieve breakeven. Okay. Thank you so much, sir. And best of luck for future. Thank you. Thank you. Thank you. The next question is from the line of from VGSBL. Please go ahead. Divya, you have been unmuted. Please go ahead. Divya, I'm sorry to interrupt. You're not audible. Could you please recheck your handset or mic? Am I audible now? Yes. You're audible. Please go ahead. Okay. I just have one question. I wanna know what can be the volume growth next year?

32:06 What are we expecting? So that we are very difficult as of now to quantify the volume growth. We have always been significantly better than the market. So we expect the volume growth in the industry to sustain and continue. This is what we have received the feedback. So as of now, the expectation is we'll at least be double digit in our volume growth for this year, the next of the year. As I also just mentioned previously, we are also adding capacity in oral tablets, which should go live by the end of this year. So the volume growth should continue in the foreseeable future. Okay. I just have one last question. I'll... For our new acquisition, what can its number be in coming years? How big do we see it?

32:58 Can you please elaborate in organic? How much are we proposing to spend? How big could it get? So if you really look at it, Oilclim acquisition or in general Overall, what is our appetite? As Sumeeti mentioned in his opening remarks, we have almost INR 1,600 crores of cash with us and then the whole balance sheet is not leveraged, right? So we'll look at from the angle of is it value accretive and making business rational to the group. I think that's how we'll look at it. And obviously, we'll be cautious in making very large bits, but it should make business sense and we have all the ammunition and gunpowder to latch on to such opportunities.

33:48 Okay. Thanks so much, sir. Thank you. The next question is from the line of Akums Drugs and congratulations on a good set of numbers. So my first question is with regards to your CDMO business. So sir, in terms of this entire API prices going up, how are we seeing the reactions of our customers in terms of what is the kind of inventory they are now having?

34:35 And how well are we able to pass this on completely to them? So two parts to it. I'll address the V part first. So the model has always remained a cost plus, right? So it is at every purchase order or whatever is the prevailing price of the input material that gets passed through. On the inventory, this honestly differs even by the similar set of companies and across some see it as a rising API environment and try to hold on to inventory while some wait and pause to see if they can defer the inventory decisions, right. So this inflated environment we see even start from February, March, we have been almost five, six months into it and the volume growth still continues, right? So whatever inventory someone would have thought to build in one quarter would now have fully liquidated, right? So volume growth, I think, is a phenomenon where the secondary in the market continues to pick up.

35:40 And people are used to putting a normal inventory of 45, 60 or whatever is the company policy for them, right? So that's there. Sure. Quite understood. And second question is with regards to the API business. So I understand we are trying to inch up our profitability. And earlier, I think we have been guiding about that by end of FY 'twenty seven, we should turn that segment profitable. So are we still holding on to that guidance? And in terms of growth, then by FY 'twenty eight, should we see that business starting at least reporting a single digit kind of a growth? Absolutely right, Abdul. So the whole target is on a monthly level, at least by the end of February, March, we should be monthly EBITDA positive in this business. And then next year, we should start positively contributing to the corporate from this segment.

36:37 Sure. And last one question from my end. The INR 1,600 crores of cash, what do have on your balance sheet, so where is that currently? And if you could also help us chart around that, how do you spend plan to spend this maybe on giving some dividend or some M and A, if you can add it, please? So, Abdul, I'll answer the first part of the question. Most of the money, in fact, 98% of the money is parked in fixed deposits with nationalized banks, right? And the money is safely with these banks. There was another question on inorganic. So our net worth sits at more than INR 3,400 crores, and there is our debt on the company.

37:28 So I think what Sahil was mentioning was, if we look at we get the right acquisition and there are synergies, I think the company has the appetite and DNA to look at an acquisition. So I think largely, Abdul, the money is well secured, and it will be put to good use for business synergies. We continuously explore. And once we have it, we will let everyone know about Understood, sir. Thank you and all the best. Thank you. Thank you. The next question is from the line of from VVD Asset Managers LLP.

38:20 Please go ahead. Thank you for the opportunity again, sir. Sir, as per my limited knowledge of the business, our sales force productivity in our domestic formulation business is lower than the industry for m... MR. And now we are increasing the MR. So what is the rationale behind that study? So as you rightly said, we are lower than the industry average benchmarks. Right? So the strategy has always been to have a strong clinical presence across our focused power products, right? The expansion was in line where we wanted to tap additional geographies, headquarter cities through our AKUMSTED, right? So while PCPIM is one metric to look at businesses, I think this is more of an outcome of a mature marketing business. We are still in a business.

39:20 We are in the phase we are building this business, right? So we are cautious of how do we do our investments into field force and products, right? So gradually, as the business will scale up, we'll certainly inch up to the average and hopefully surpass them. But at this point in time, we'll have to appreciate that this is a phase where we are building the business. Okay. Thank you so much. Thank you. As there are no further questions from the participants, I now hand over the conference to Mr. Ankit Chen for closing remarks. Over to you.

40:07 Thank you, everyone, for attending the Q1 FY 'twenty seven earnings call for AKUMS. If you have any remaining questions, you can reach out to the Investor Relations team. Thank you, and have a good day. Thank you. Thank you, everyone. On behalf of Akums Drugs and Pharmaceuticals, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.