Anupam Rasayan India (NSE:ANURAS) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to Anupam Rasayan India Limited Q1 FY 'twenty seven Earnings Conference Call. Before we begin, a brief disclaimer. This conference call may contain forward looking statements about the company, which are based on beliefs, opinions, and expectations of the company as on date of this call. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. From the management side, we have with us today mister Anupam Rasayan, managing director, mister Gopala Gruval, chief executive officer mister Amit Qurana, chief financial officer and mister Vishal Takkar, deputy chief financial officer. As a reminder, all participants' lines will be in listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

0:55 Please note that this conference is being recorded. With this, I would now like to hand over the call to mister Anupam Rasayan, managing director for his opening commit. Thank you, and over to you, sir. Thank you. Good afternoon, and thank you for joining us for our q one FY twenty seven earnings call. We are pleased to begin FY twenty seven on a strong note with consolidated total income growing by 36% year on year. This is a strong start to the year and reflects continued momentum across all businesses supported by the commercialization of new products and healthy demand across our key segments. More importantly, we believe the quarter reinforces structural transformation at Anupam Rasayan. Over the last few years, we have been consciously building a more diversified and globally integrated specialty chemicals platform, moving beyond our commercial strengths into pharmaceuticals, performing materials, electronics, EV and other high value applications.

1:57 A key milestone in the quarter was the commercialization of Ethyl Triphosphate or ETFE using flow chemistry. We are proud to be the first company globally to commercialize ETFE through this technology. This achievement further strengthens our expertise in complex fluorination chemistry and more importantly demonstrates our ability to develop and commercialize differentiated products using advanced process technologies. We also signed the letter of intent with Basalt for the potential long term supply of our specialty chemical product, demonstrating our ability to participate in emerging hybrid applications. This further underscores the strength of our customer relationships and our capability to develop products for the next generation technologies.

2:44 On the strategic front, our Jihook acquisition is already strengthening our global platform. It uses a strategic manufacturing base in The US, expand capabilities in advanced and high purity chemistries and provides a strong platform to participate in high value markets such as semiconductors, automotive, EV, aviation and performance materials. With only a limited period of consolidation in FY 'twenty six, we now see FY 'twenty seven as the first full year of Geohawk's contribution and integration. At the same time, the proposed acquisition of this JVS Pharma continues to progress its plan following the signing of the agreements. We see this as a transformational step in building a more complete form of platform, taking us from key selling materials in India's tools formulations, regulated manufacturing and global market access.

3:37 The platform also provides significant headroom for capacity utilization and a robust pipeline of 62 molecules over the next few years, including 48 plus molecules targeted at emerging markets. What is particularly exciting for us is that these initiatives are now standalone. Tencent gives us critical raw material and flow initial integration. Anupam brings deep chemistry and custom synthesis capabilities. JHUB uses US manufacturing and CVMO platform, and this adds a differentiated pharmaceutical and formulation platform. Together, these businesses gives us the ability to participate across a much broader part of the value chain across segments. With a strong pipeline, deeper customer engagements and expanded technology platform and an increasingly diversified business mix, we believe Anupam Rasayan is entering an exciting phase of growth and FY 2027 is an important year in translating the investments and strategic initiatives over the last few years into sustained business growth and value creation.

4:43 With that, I will now hand over the call to Kupam Rasayan to take you through our business performance and key strategic developments in greater detail. Thank you. Thank you, Anupam. Good afternoon, everyone. Q one FY twenty seven has been an encouraging quarter for us, both from an operational and strategic perspective. We have started the year with strong momentum, and importantly, are seeing increasing traction from initiatives and investment that we have been doing over the past few years. Our focus continues to remain on accelerating commercialization of molecules from our existing pipeline, including the contribution from high value businesses and deepening our engagement with global customers. Let me begin with our technology and product development initiatives. The commercialization of ETSA using flow chemistry is an important milestone for Anupam.

5:30 Flow chemistry enables us to effectively execute complex chemical reaction while improving process control, safety, scalability, and overall cost. Our successful commercialization of this product demonstrate the strength of our r and d and r and d and process engineering capabilities and reinforces our position in the differentiated coordination chemistry. We continue to see good momentum in our pharma and perform material pipeline. During the quarter, we commercialized one new product in pharma and two new products in performance material. Further bonding our portfolio and spending our presence in high value applications. The pipeline ahead is equally encouraging. We have currently 65 plus pharma and polymer molecules in r and d and pilot, and have commercialized more than 10 molecules in this segment over the last two years.

6:17 This gives us strong pipeline of opportunity that can progressively move from development to commercialization over the coming years. The letter of intent signed with Bascor is another miles... Important milestone. The potential long term opportunity of approximately US dollar 300,000,000 spread over a period of ten years reflects the depth of our customer engagement and our ability to participate in emerging high growth application. We expect commercialization to begin during FY twenty seven, and we'll gradually scale the opportunity based on customer requirement. With this, our cumulative signed NOI and contract highlighted in the presentation represents roughly 18,000 crores of potential business over their respective ten years with several new products scheduled to come for commercialization in and from FY twenty seven onwards.

7:07 Coming to our acquisition, Agia Fine Chemical is an important strategic addition to Anupam Rasayan platform. It provides us with the manufacturing presence in US while spending our advanced chemistry capability and our ability to serve global customers across life sciences and perform material. We believe the combination of Anupam Rasayan's manufacturing and process chemistries of JHA technology platform, customer relationship, and US presence creates a significant opportunity to deepen our engagement with existing customers and jointly pursue new business opportunities. On pharmaceutical side, the proposed acquisition of this GVS Pharma is progressing as planned. Once completed, we intend to leverage this GBS regulated manufacturing capability, pharmaceutical portfolio, and market presence to create an integrated pharmaceutical platform. Looking ahead, our priorities remain clear that this commercialized product from our existing pipeline, increase the contribution from performance material and pharmaceutical, depend depend our customer relationship and continue investing in advanced technology and industries.

8:05 With that, I will hand over the call to Amit Vai for his comments. Thank you, Gopal Ray, and good afternoon, everyone. Our q one FY twenty seven performance reflects a healthy start to the year, supported by new product commercialization and continued demand across our businesses. Alongside growth, we continue to maintain a disciplined approach towards capital allocation and integration of our strategic investments. Let me first take you through the key financial highlights. Consolidated total income for q one FY twenty seven stood at 668 crores, representing a growth of 36% year on year. Revenue from operations was 655 crores. Consolidated EBITDA increased 35% year on year to 175 crores, with EBITDA margins maintained at 26%.

8:56 At the same time, PAT for the quarter stood at 51 crores compared to 49 crores in q one FY twenty six, representing a 6% year on year growth. The movement below EBITDA largely on account of increase in depreciation expense due to increase in asset base and higher depreciation in Jayhawk. On the CapEx front, we have now completed the major CapEx cycle that we had undertaken over the last few years. All our major planned projects have been commissioned and are operational. And therefore, we do not foresee a significant CapEx requirement for the existing Anupam platform in near term. We will continue to be selective about incremental CapEx and evaluate any new investment based on customer visibility, strategic relevance, and expected returns.

9:42 Coming to cash generation and working capital, these remain important areas of focus for us. For Q1 FY 'twenty seven, consolidated cash profits stood at INR 64 crores compared with INR 56 crores in Q1 FY 'twenty six. Working capital remained largely stable during the quarter, and we expect to see further improvement in FY 'twenty seven. As we have highlighted earlier, the business is becoming increasingly diversified towards pharma and performance materials alongside the recovery in agro business. We expect this changing mix together with tighter inventory and receivable management to support further improvement in working capital efficiency over time. With this, I will now hand over the call to Vishal Bai to take you through the financial performance in detail for the quarter.

10:29 Thank you, Amit Bai, and good evening, everyone. I will briefly take you through the consolidated financial performance of Q1 FY 'twenty seven. Consolidated total income for the quarter stood at INR 6 and 67.5 crores compared to INR 490.7 crores in corresponding quarter last year, registering a strong growth of 36% year on year. Consolidated EBITDA for the quarter stood at INR 174.9 crores compared to INR 129.2 crores in Q1 FY 'twenty six, representing a growth of 35% year on year. Consolidated EBITDA margins for the quarter remained healthy at 26%, broadly stable on a year on year basis.

11:15 Consolidated profit before tax stood at INR 69.7 crores compared to INR 62.9 crores in Q1 FY 'twenty six. Consolidated profit after tax for the quarter was at INR 51.2 crores compared to INR 48.5 crores in the corresponding quarter last year, registering a growth of 6% year on year. Consolidated flat margin for the quarter stood at approximately 8%. Our performance during the quarter reflects the increasing scale of business and continued contribution from new product commercialization. Going forward, we remain focused on sustaining the growth momentum, increasing the contribution from high value products, and delivering efficiencies across the platform.

12:00 Thank you. Now we are open for... We can open the floor for q and a, please. 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 your touch tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, please wait for a moment while the question queue assembles. The first question is from the line of from Grow More PMS. Please proceed with your question.

13:00 Hello? Am I audible? Yes. You're audible. First first of all, congratulations on the good set of numbers. I... My first question is regarding, like, in the last call, management has guided that we may acquire an API plan. So I want to know what is the status of that. So we continue to explore that. And right now, there is nothing specifically that is there that we we we we need to share, but we continue to explore. And once the list acquisition is of the consummated, we will be working with the list management to explore any any acquisitions together. So right now, it's an... It's it's just on the exploratory stage for now. Okay. And on the follow-up on your answers, sir. So, basically, I want to know that the... Will the management of police remain independent like and others, or will appoint our own team?

13:54 So the... Anupam's, you know, approach towards any acquisition that we have done till date, it will be that we will continue to keep them as independent as as they they can be. The whole approach will be that team has... The the investment that we have done is is primarily with with an... With a with a view that they have a strong management team and an existing business and and and relationships, which we would we would we would like to to be benefiting out of. Further, like, in fact, we will also continue to support them in terms of product development, market exposure, or any other support that we can give... We we... They would need and we can offer. So, yes, it will be independent to that extent of their running their business as they as as they plan for and with the support from Anupam as we have been offering in Tanzania and also in J Rock.

14:53 Thank you. The next question is from the line of Tanya Chaudhry from Investec. Please proceed with your question. Hello, sir. Thank you for the opportunity. Sir, could you provide an update on the Bliss GBS acquisition timeline and the key approvals that are still pending? So if you see the Bliss has been going as well, Bliss acquisition has been going in in in the manner it was we had anticipated. We've got the the pre approval. Also, the open offer that was to be coming in has has has come in, and August 10 was the last day to for any shareholder to offer their shares, which has been successfully concluded.

15:42 And now we are in the process of closing where we will have to do a few procedural steps to comply and and and deliver the the process. We expect that by the by the first half of September September, we should be able to conclude this transaction fully. Alright. Alright, sir. Also, what was the contribution from Jayhawk this quarter and the EBITDA margin that it has posted? So Jayhawk has been contributing... Yes. So Jayhawk has been contributing around about 20 to 22% of our revenue for this quarter, and the margins have been very robust at around about 19 to 20 percentage points.

16:31 Alright. Alright. And, sir, the share of polymers has gone up significantly this quarter. So is this sustainable? So... But, see, there has been a little little lesser contribution from the agrochemical because of the the way the the demand cycle is over the year. But I... We believe that on a stand alone, we should be able to get a a polymer business to be in the range of 20 to 25%. And on a consolidated basis, it should be in the range of 30 to thirty thirty to 35%. Understood. Understood. And I think the consolidated EBITDA margins have remained flat at around 26% despite a much higher share of Performance Materials. So how should we look at EBITDA margins over the next two to three years?

17:19 So typically, as I have been always guiding that on a stand alone, we should be looking at anything between '26 to 20... '24 to 26 on a on a stand alone basis. And on a consult basis, we should be looking at anything between 20% to 2422% to 24% EBITDA margin is what I would really guide at because there are multiple companies, multiple segments, multiple end markets. So all in all, I would really suggest to guide at that kind of numbers. Got it, sir. Thank you so much. Thank you. Thank you, Anupam. Thank you. The next question is from the line of from GM Financial. Please proceed with your question. Hi, sir. Thanks for the opportunity.

18:06 So first question was on commercializing ETFE in flow chemistry. Can you throw some light to what other players are using and how significant is this achievement for us? And if we compare other players, what are the applications that ETFE is being used and how big can this business be for us? Okay. So see, as you can... And and then, Nick, you are also very expert on this, so I'll just share it for everyone also. That low chemistry in per se is is a is is a very, very cutting edge technology, which very limited number of people across the globe would have been using it on a commercial basis. A b, what it does as we as can with... As we can say is that it improves the the safety.

18:55 It improves the product quality because there is no back reaction. It is very small reaction, small volume that gets reacted every time. So safety is high. There is a very, very high quality improvement. There is lesser environment equipment because there are lesser number of solvents that are used or side reactions happening. And hence, that also improves the the environmental footprint or lower the environmental footprint. And you are able to do a a higher scale with a lesser, you know, land requirement or or a or a plant because these reactors are classically a tabletop reactors, kind of a size of reactors reactors. So to that extent, this is a very, very unique that that is there, and especially, ETS is one of the way that the products which gets application across pharma, agro, and electronics and semiconductor industry.

19:46 I think we have been very, very... You know, it demonstrates a very strong technical capability of a of a of a player like us to put... To to deliver a product of of such wide application inFlow. And to to our under... To our knowledge, we are the only ones in the in the in the in the... That... Who are able to do it in in inFlow today. As you said, in terms of size of the market, we estimate that it should be in the $500,000,000 kind of of of a of a revenue that that that this molecule will have. So that's the large volume market that we can we can go after and and and and look at. So it it improves our right to win in this market. Also, it demonstrates the technical capabilities to my existing and and new customers also that, you know, we are able to to to demonstrate that we are able to do a lot of new products in a in a in a in a very newer newer technologies.

20:47 So that's what I would say, Nick. As one manufacturing cost parameters, we would be lower than the comparable chemistries, and particularly then we will be making similar kind of margins as we are making the overall business or the margins will be slightly better than the existing business margins? And secondly, this $500,000,000, any broad ballpark idea how much we can cater to? So... But, see, I would love to look at at least... To start with, at least at least at least five to 10% and going up to 15 to to 30% is what I would say. I don't want to guide a particular number right now, but, yes, that's the kind of a market that we would want to want to to look for. And and and what we are right now working on.

21:37 That's one. Two, you're right that the the the cost cost parameters will be better for us, and hence, the margin profiles should be better. As you know that we are a CDMO guy, we we have our CSM page. We would share our our value creation with our customers. However, yes, it would have an upward bias in terms of our margin profiles for these products where you are actually creating value for our customers. Understood, sir. And just secondly on this Jayhawk, what is the CapEx that we plan to do for FY 'twenty seven and 'twenty eight? And will Anupam need to fund any part of this CapEx? So today, there is a reasonable reasonable level of of capacity that Jayhawk also has, and they will continue to grow their their portfolio there and continue to expand their business.

22:34 There may be there may be some some requirements of CapEx that will be there for repurposing or for replacement or for some some additional new products that are introduced. But they are they are fairly fairly well capitalized in terms of cash and in terms of their their their their completely unlevered. We don't see that we would have any, you know, any requirement that we will need to support Jayhawk for there any any any CapEx going forward for now at least. We can see that. Okay. So for now, our CapEx will be largely for the stand alone business only. Any number that you can have for '27, '28? So, also, if you see now as as as Amit Dayan also mentioned in his opening remarks that large part of our CapEx program has been completed, and there'll be there'll be very little number...

23:24 Very little CapEx that will be required going forward. Maybe it is really for a wrong model purchase... Sorry, repair and maintenance side or it may be for a little bit of repurposing. And to my mind, in the range of 70 to 80% will be... $70.20 crores maybe the the number that I would I would look at from a CapEx point of view for now. Okay. Thank you for answering my questions, and all the best for the coming quarters. Thank you. Thank you. Thank you. The next question is from the line of Hardik from ICIC Securities. Please proceed with your question. Thanks for the opportunity, sir. Sir, just want to check on the j hop. As you mentioned that in the percentage of revenue, is it correct? Because the differential is coming around one thirty nine for revenue, and EBITDA is around 24.4 crores. Is that the correct number for JHOP for the quarter?

24:28 Yes. JHOP revenue will be around INR $4.45 odd crores. And from a revenue point of view... Sorry. EBITDA EBITDA point of view, as I said, it'll be 90 to 20% will be the the EBITDA for. So it should be in the range of 30 odd crores. And what about that, sir? That as as as I think also mentioned, there is a large part of our depreciation in their in their one. So the back will be in the range of around 10 crores. $8.09 to $109.09 odd crores. Okay. Okay. And, sir, as you mentioned on the Blaze acquisition, you know, as it's progressing well, sir, on the open offer, are we able to get any, you know, any share? Are we able to get any share in these open offers? Because the prices are very lower than the current market price.

25:21 So the the investment would be the, you know, one which we committed during the open offer. Is it? Or it's going to increase? No. So you are right. The the number that we we have got to... Got got an update for is a very, very small number. It is a... To that extent of insignificant number that we have... That has been, you know, provided or offered to us to buy under the open offer. We saw a similar experience in the 10 pack open offer also. Probably, at least as a management, would love to read that the shareholders have a fairly high confidence on us in terms of our ability to take the company forward. And, yes, there is limited that is left out here. Got it. Sir, if I may squeeze in one more question.

26:09 Sir, in stand alone, if you look at that gross margin is now broadly 58% for the quarter. And I think, you know, it has increased drastically as compared to, you know, on year on year basis as well. So just want to understand, you know, if mainly driven by the performance material where the share is higher, or is there any other component as well in this? So I think the gross margin, I... As as I... I always try and say that, yes, it is largely based on the the performance measures, but I would always guide to see us more of the EBITDA EBITDA level as I have always been suggesting because gross margins move across depending on the product portfolio, product which product grows in which quarter. And also in terms of what segment is contributing, how much more. But if you look at from an EBITDA point of view, that I would really try and see and there, I think we have been fairly stable in terms of our numbers.

27:16 The next question is from the line of Harsh Shah from Axis Capital. Sir, my first question was on the Basquart LOI. So just wanted to understand where are we... So how is the ramp up of the product? And in terms of the tech, do we already have the tech for the product development, or is it to be jointly developed with the customer? So so so this technology is fairly with us. We have also come... You know, done it in the in the in the plant in terms of lab and other... Lab and the pallet as well. And so to that extent, it is it is fairly fairly well developed for us. Yes. We'll be working with our customers in terms of what they need, in terms of their security and others, and that is why where we have said that we have been able to get to a very strong level and hence the LOI. Otherwise, we would have not gone to the LOI stage as well. And we ended... We expect it to be commercialized by the by the by the by the second half of the year or the later half of the year. So to that extent, that capacity and capability is is very much there.

28:22 Okay. And how should we see the ramp up? When do we see meaningful revenue start kicking in from this contract? So so as as as we say, it will be another, you know, in in in two in two to three years, we would see a larger revenue ramping up as we go because that's how any new product will take, and that's what you will see. So in two to three years, you should see a fairly robust stable revenue coming from this. And sir, for the balance or... We be it this next year as well. It will be, but it'll it'll keep ramping up as we as we... As I said. Okay. Okay. And, sir, for for the balance order book, so where are we in terms of execution? How much... What portion of the order book has been executed, and what portion you're expecting in the next couple of years?

29:08 So see, in the order book, as I said earlier also, that we have been continuously growing our revenue roughly around about 400 odd crores plus was the revenue for the last year. This year, we are expecting it to be significantly higher, contributing around about 25% of our revenue. And going forward, it should contribute around 30 odd percent of our revenue with the higher book based volume that we have. So this is a very strong business strong ramp up that is happening. And if you see most of our products have been commercialized or should be commercialized next year. This year, last year. Okay. And sir, my last question was on the stand alone working capital side. So where are we in terms of working capital improvement?

29:55 And where do you think we should end it by this year end and then next year as well? So on the working capital side, the working capital has been remaining stable as as Amit also mentioned in his that working capital has been has been stable and has... We are on we are on the trajectory that we have been been guiding there. And there is improvement that we see coming in next coming quarters. So by the year end, we should be in the range that we have been guiding in the past as well. Got it. Okay. That's all from my side. Thank you so much for the answers. Thank you. Thank you. The next question is from the line of Praful Singh from ICIC Securities. Please proceed with your question.

30:44 Thank you for the opportunity. Good afternoon, sir. Firstly, just on the capitalization, you obviously mentioned that most of the CapEx has already been completed. Just wanted to understand because if I look at EBITDA growth of 30 plus percent, what has flowed through to the profit level is about 6% growth, presumably because, obviously, depreciation and interest costs have gone up. So is this the kind of run rate we should be building in for the rest of the year? Or is there some more capitalization that is remaining? In which case, obviously, interest cost, of course, is a function of how much cash flow will be there. But can depreciation increase in terms of run rate over the next few quarters? So see, there is no major capitalization that we are seeing going forward. And largely, the depreciation was largely on account of Jayhawk adding coming into our portfolio.

31:36 And that is Jayhawk has taken historically, Jayhawk, under the old management, had had a different depreciation periods that they had, and we are reviewing it and and and seeing that. But principally, it is not because of the additional CapEx that is coming into the the... Or the capitalization that is happening to the balance sheet. But... And in terms of interest costs, how should we be looking at this number? I think I think the the interest cost, I think this should... My my my my my sense is that this interest cost should be the the similar numbers. I don't see it to be a... It to be going anything further than this. This is a fairly representative run rate for the interest cost. Got it. And the second question I had, sir, was with respect to the.

32:24 Obviously, we are seeing our performance deterioration. We are under newer bits and pieces of... I mean, newer block that's embedded. But in terms of agri, how would we... Looking at it in terms of outlook, how does the environment look, and, you know, what are the prospects that we see for the next nine months when getting this? Global, I think your line was weak or somehow my line was weak. I don't know, but I couldn't hear your question. If you can repeat it to me very helpful, please. Am am I am I audible right now? Yes. You are now... You're you're well audible to me now. Okay. I was just asking, sir, about the agri business. Obviously, we have been focusing on performance materials and pharma and all of that, but agri still remains significant.

33:09 Just your thoughts in terms of what that market looks like for the next twelve to eighteen months. What is the outlook, and how will you see that business evolving for the agri segment? Yeah. Agri said, we are seeing at least the the the products that we have been in the... We have been in we have been in, we see a fairly fairly robust demand. I do not see we do not see that there will be any... So so the demand recovery is there. The... We see that whatever we had been been been forecasting at the start of the year, we are seeing it to follow through. And I guess and that's the reason also, if you see our guidance has been that the agri contribution will continue to be reasonable to our portfolio, but it will be dropping it because primarily not because of the agri business slowing down, but it is because of the other two businesses growing faster and having contribution coming higher from there. But agri business should be stable to my mind, and it should continue to its own growth path.

34:11 The last question, sir, if I may. With respect to the FSC 32 quota, where are we in terms of actual paperwork and in terms of the actual quota we've released are formally being approved for our So this has been addressed by by Tenfax management in their call. And I can say from the from from the shareholders' perspective and the and the team from Anupam, I can only say that we remain confident with what Tenfax management has guided and and and and presented. We believe we we are very, very confident of the Tenfax management's estimates and their plans. So I would I would only... This is what I would say because if they are also listed company, but from my perspective or from Anupam's perspective, I'm saying they've guided well, and we we we completely believe in their guidance.

35:21 The next question is from the line of Vedant from Mars Investments. Please proceed with your question. Hi, sir. Thank you for the opportunity. We wanted to check on the Bliss, was there any input or market development support that led to the Bliss performance during the last quarter? And what was the capacity utilization if you have that number? Because in the last call, we mentioned that they are operating at around 30%. So any I think that... See. So a... See, it's a it's a listed company. So so I would be be be conscious of what I make that statement there. B is also... Today today, we have... We are yet to con... Consummate this transaction. So so please be mindful of these two things. And and and whatever I say, please take it as my opinion or my view rather than the the Bliss management's view. So please be mindful of these two things.

36:18 However, they have been growing well. They have they have given a good set of numbers, and it's an organic growth that we are seeing in that that company is what I can say. But pardon me, probably next year... Next next call... Next quarter or the quarter after when we have fully integrated the company or when we have fully had the control of the company is when it will be more appropriate for me to make a statement on their performances. Okay. So are you planning to do any company specific calls because they have not been in, so what's the continuation of the transaction? So, yes, we will we will we will work with the with the with the with the the list management to to to to, you know, have more more better...

37:05 Or or a better invest... Investor or analyst outreach, and we'll we'll explore the same. Okay. Fine, sir. Thank you so much. Thank you. Thank you. The next question is from the line of Anupam Rasayan from Alpha Capital. Please proceed with your question. Sir, on Bliss side, would you like to comment, as in after this completion of merger, what kind of growth or numbers we can expect? Because in earlier call as well as the TV interviews, we said it it is at 30% utilization, which we expect to go to 60, 70 over next two to three years. So how should we look in terms of? I I think that's... I... We continue to have the same view. Our view is only strengthening. And if you look at the performance, their performance has also been demonstrating that what hypothesis we went in with is looking more robust.

38:05 So we continue to believe that we should be able to improve the utilization of the company's assets to 60% to 70. And that would translate to the kind of numbers that are there that would be there. So I would say that, yes, we continue to be confident there. And, sir, in terms of CDMO, also, you you also talked about that also if I've listened in the last call. So how how are things progressing on that front, sir, and how are we thinking on that? That that is that is going forward. And as we... Then once once the transaction is gonna consummate it, I think both the both the both the teams of Anupam as well as the Bliss team can work together to to really lead... Is... You know, to to out of... With more rigor and more more more confidence to the customers and and and attract that business. Would be doing it on their own, and they would be there, and and we will... As we go further, we will be supporting that...

39:05 The process, and we'll go together. Like what we are doing today with Jayhawk, like the Jayhawk's management... So Jayhawk's sales and marketing team and and Anupam sales and marketing team are working together and jointly making offer... You know, jointly offering the product portfolio and and the services to our customers and their customers. And the same approach we will take, but where we will be sitting along with the the existing management and and deciding how how and which opportunities to work together on. Got it, sir. Sir, and in terms of Bliss, this quarter was quite good in terms of both growth as well as margin expansion. So is it like the fully organic or we have started helping them with the clients in The U. S. And Europe side? It's organic.

39:51 It's all I can say. And any future color we should look on that front, sir? Please, this is we both are listed entities. We have not yet consummated the transaction. I would really refrain from making any guidance or any statement there. We have talked about what we think about Bliss and how we can work about it. And give us a quarter or two once we have settled, we have sat with the once we have consummated this transaction, we have sat with the management, understood their approach and work together, and then then I can... It will be more appropriate for me to... Me or Anupam Anupam to make any any more guidance on this. I I hope you appreciate. Apologies if I'm not giving you more detailed color on this. Sure, sir. Thank you. We have done really well in in terms of Tenrec, and I hope we will continue same in.

40:43 Thank you for that. Thank you for that wishes. Thank you. The next question is from the line of from Crown Capital. Please proceed with your question. Hello. Good afternoon, sir. Thank you so much for taking my question. Firstly, congratulations on a great set of results, sir. Sir, I just wanted to know, like, in terms of the revenue that we can do this year from, you know, our existing three companies, Anupam, Tantac, and JHawk, what kind of, you know, revenue can we achieve in FY '27, sir?

41:33 Sorry. I I can't hear you. If you can just please Yeah. Hi. I I was saying that what kind of revenue can we see in FY twenty seven from our existing companies, you know, ex of Bliss because whenever Bliss gets, you know, consumer that's not completely in our hands. Right? So the three companies, what kind of revenue can we see? Has pushed you. So if you see what we had what we had also mentioned earlier in our call and just also, we believe that the number will continue to be in the range of 20 to 25 plus or minus a couple of percentage points in terms of our revenue growth on a organic basis. And with the addition of the the Jayhawk, that number will be added because Jayhawk was not counted in our last year's revenue, any significant revenue.

42:21 So another 10% to 15% of additional growth will come because of the addition of Jayhawk's revenue in line. So that's the kind of a number that we should be seeing as we go further. Okay. Okay. So, sir, just want to know this year... This quarter, JFoc has gone... You know, you know, contributed around $1.50 crores, like, one forty crores. Right, sir? So last year, it was not there. Right? So then you'll not have seen a huge growth this year. Right? Like, ex of Jayfork contribution. Right? What would... Our growth would have been single digit? Yes. It has been single digit. And as Anupam Rasayan and Amit Bai mentioned in their opening remarks, that q one is typically a a a more epic quarter for for us seasonally, and hence, it is in this range. As we see going forward, we should be able to achieve the numbers that we have been been suggesting.

43:16 Okay. Okay. Okay. Fair enough. Fair enough. So is it... So Bliss by when can the full transaction, you know, be considerably be by the end of the year? Bliss, as I said, that the the the transaction should be consummated in the first half of September, and then the integration would start where we'll sit with the management and and and and work with them in terms of what kind of support that they would need from us, what kind of integration that we want to do, all that conversation will start from Santander. Of course, correct, on the consumption of the transaction. Great. Great. Yeah. That's it from me. Thank you so much, sir. Thank you. Thank you. The next question is from the line of from JM Financial.

44:04 Please proceed with your question. Hi, sir. Thanks for the follow-up. Sir, I remember you're talking about semicon in the last two calls. So just wanted to understand what is the progress there? And what are we doing on the chemicals and the semiconductor side? So yes, it's thanks, Amit, for asking that. Semicon is really, really growing very fast for us. You know? And there is there is a very strong traction that we are seeing across existing... That customers that we've been talking in, new customers that are being added to our to our Semicon portfolio. So to that extent, yes, Semicon is becoming a very, very interesting growth trajectory for us. And with Jayhawk coming in, it is only accelerating that process for us because Jayhawk has a very, very good validation and an existing portfolio of products which are going into the semicon industry. So put together with Anupam and Jayhawk, it is becoming a very strong growth factor for us as we go.

45:07 Is there any color on product approvals or commercialization or maybe revenue contribution that we are planning to scale up in the next three, four years? Any broad idea you can give on that? Hello? Miss, I can't hear you. Can you can you just repeat, please? Yes. So I was just trying to ask the color on the numbers. So if we... What stage of approval cycle are we in some of these products? Have we commercialized some of them? What kind of revenue contribution can we see, say, next couple of years?

45:56 You see, there have been lot of working together as well. But if you look at Jayhawk today, actually, fairly fairly reasonable level of their revenue is coming from the semicon industry... The semicon end market. And if you see their LinkedIn profile, they have they have they have given a lot of focus and details about their manufacturing products and and their applications. It's it's pretty pretty well application across defense and semicon. And then Anupam also, right now, we are in the process of getting commercial, know, validation process on on on the products. So that's what I can say for now, Nate. Sure, sir. I'm sorry for that. Thank you. Best of luck for the coming quarters. Thank you. Thank you.

46:43 Thank you. The next question is from the line of Josh, an individual investor. Please proceed with your question. Yes. First of all, thank you for the opportunity. My question is regarding the Bliss acquisition. So are we raising any debt to fund the acquisition? And what will be the structure for it? So, yes, thank you. I... The the... What we have earlier also indicated, we continue that it will be in the similar base, where we are creating a fully owned subsidiary of Anupam, who will... Which will acquire the the stake that we are planning to acquire from the shareholder selling shareholders of Bliss.

47:28 There, we will be taking a debt of around about INR 300 crores. And the balance consideration raised through an equity linked instrument, which would be the total balance of the total consideration. So that is how we are looking at funding it. And this equity linked instrument, Anupam will have a right to buy them out at any given point in time as and when they decide to. So that's the the transaction structure that we have been charging for the... This acquisition. The next question is from the line of from Financially Free. Please proceed with your question.

48:22 Hi, sir. Thanks for the opportunity. So I just have one question regarding Bliss, sir. So sir, in Bliss, if we can see that Bliss is mainly formulation oriented and Anupam is mainly intermediate oriented when it comes to pharma side, sir. So is there any plan of acquiring a API company, sir? Yeah. So what we had mentioned earlier that we will look at an access to an API facility to have an integrated platform. And that, as I said, once we have a consummate with this transaction, we'll sit with the the management of Bliss and work with them to see what kind of an asset we should be acquiring, when should we acquiring, where should we acquiring, what kind of capabilities we should... We have our own plan for the the same. However, we would like to to sit with them and finalize those.

49:11 There are... That's how we would be looking at access to the API certificate that we are we are in this, Arjun. Got it, sir. And, sir, currently, do we have any company in our pipeline or we are exploring just in exploring stage, or do we have any such opportunity in our pipeline? So as I as as I as I as I said earlier also that what we will tend to do is we keep exploring opportunity. We'll continue to explore opportunities and approach. And the... Once once there is something meaningful and there will be income, which we will be sitting with the management first before I would like to say that, yes, this is the opportunity which we feel is is is is right for us to to acquire, especially when we are talking about any pharma API assets because the inputs from the the existing management of this will be be that much more critical.

50:08 Got it. Got it. And, sir, the funding will be will be from equity, or it will be a mix of equity and debt or any color on So if you look at Blitz today, they are... They're sitting on a cash flow for over 200 odd crores, and they have a a very healthy balance sheet with no debt on the balance sheet. So I don't see any any any requirement of large external capital for acquisition of any small... Any API asset that that will be there. And if they... If if there is any further requirement, the the balance sheet is pretty robust for them to to leverage if they have to leverage a bit of it. But today, don't see it. They have a very strong receivables also, which can be source a of capital also for us. So I would I would leave it that they... It is well funded for for very strong growth, including any assets if they need to acquire or build.

51:05 Means, sir, cash flow is sufficient. Means our internal accrual will be sufficient to do that acquisition, if my understanding is correct. Yes. And, sir, the second question that I have I have on the Halol CDMO site, sir. So what what will be the timeline for this, sir, if you provide some color on that, sir? Yes. Please appreciate they are listed entity. I am a listed entity. I would... And we have not consummated this transaction, so I would not want to make a statement on their behalf. So if you can pardon me and wait for a for a quarter more, probably we'll be able to give you a better approach to that. No problem. Thank you so much, sir. Thank you. Thank you.

51:53 Thank you. Before we take the next question, a gentle reminder to participants that you may press star and one to ask a question. The next question is from the line of Nishanth Patra from Dholakia Ventures. Please proceed with your question. Yes. Hi. I was actually wanting... I wanted to understand what are the synergies that we're expecting from Jayhawk. Yes. So I think if... As as we have meant, you know, Jayhawk is is a very strong in terms of their semicon semicon defense and performance material products. They were lot of, know, of their acquisitions and and access to customers and validations. And Anupam has has a complementary portfolio of products which can be complemented with those products as well, and we will be working with them to to get into this joint offering.

52:46 Bain and Co, one of the large, you know, consulting firm, global consulting firm, is working with us to to run the PMO and IMO for us where we are able to to to assess and realize... Assess those joint capabilities and synergies. And that's what we are right now going to the to the customers and and offering us. This will help us, Anupam as well, in terms of getting contributions of... Contributions from semicon and electronic portfolio for Anupam as well, which will be a very high value added product for us as we go. And Got it. No. I think that's helpful.

53:39 Ladies and gentlemen, that was the last question for today from the participants. I would now like to hand over the conference to management for their closing comments. Thank you, Anupam Rasayan. Thank you. Thank you, everyone, for joining us today, especially on a Friday to give us that time. So I really appreciate you coming in and and actively participating. I hope we have been able to to answer all your questions. If there are any other questions, please feel free to get connected with the SGA who are... Who will help us... Help you in getting the the answers or communicating with us. And thank you for... Thank you, and have a good weekend. Thank you.

54:25 On behalf of Anupam Rasayan India Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.