IOL Chemicals & Pharmaceuticals (NSE:IOLCP) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to IOL Chemicals and Pharmaceuticals Limited Q one 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 miss from MUFG Investor Relations. Thank you, and over to you, ma'am. Thank you, Uda. Good afternoon, everyone, and welcome to IOL Chemicals and Pharmaceuticals Limited q one FY twenty seven earnings conference call.

0:51 Today, on the call, we have mister Padip Kumar Khanna, chief financial officer mister Singh, senior vice president and company secretary, mister Kushal Kumar Rana, director of works, and mister Rakesh Majin, finance adviser and strategic head, to provide insights on the company's operational and financial performance. Before we begin the call, I would like to give a short disclaimer. This call may contain some of the forward looking statements, which are completely based upon our beliefs and expectations as of today. The statements are not a guarantee of our future performance and involve unforeseen risks and uncertainties. With this, I would like to hand over the call to Abhay sir for his opening remarks. Over to you, sir. Thank you.

1:42 Thank you so much, Rashid, for introduction. Good afternoon, everyone, and welcome to the Q1 FY 'twenty seven earnings call of IOL Chemicals and Pharmaceuticals Limited. Thank you for joining us today and for your continued trust and support. I hope you have had an opportunity to review our financial results and investor presentation filed with the stock exchanges and also available on our website. We have started FY 'twenty seven on a strong note with healthy demand across key products, improved capacity utilization, favorable product mix and continued focus on operational efficiency. In Pharmaceutical division, we continue to make good progress in diversifying our API portfolio beyond ibuprofen with healthy demand across key products, including paracetamol, pantoprazole, metformin, fenofibrate and clopidogrel, etcetera.

2:43 Non iron products continue contributed 43% of pharmaceutical revenue in Q1 FY 'twenty seven compared with 36% in Q1 FY 'twenty six, with revenue growing 67% year on year basis and emerging as a key driver of growth in our pharma business. Importantly, this performance also demonstrates the benefits of the initiatives that we have taken over this past few quarters to strengthen our manufacturing platform and diversifying our API product portfolio. While ibuprofen remains an important part of our portfolio, our strategic focus is increasingly on building IOL as a diversified and integrated API platform with multiple products contributing to our growth.

3:38 Our international business also strengthened during the quarter with exports increasing to about 28.5% of revenue, while the NNPA approval for clopidogrel in China further expands our regulatory reach and market opportunities. This progress is particularly encouraging against the backdrop of continued geopolitical uncertainties, supply chain challenges and inflationary pressure across flat raw materials. Our chemical business also delivered a strong performance during the quarter, supported by improved realizations, efficient raw material procurement, higher exports and operational efficiency, capacities enhancement across key products lines further strengthen our integrated manufacturing platform and provide us with greater flexibility to cater to demand across key end use industries.

4:41 Going forward, our focus remains on scaling our API portfolio, improving capacity utilization, expanding our presence in international regulated markets and driving operational efficiencies through our integrated and backward integrated manufacturing platform. Our objective is not merely to add capacity, but to build meaningful and sustainable positions across a diversified KPI portfolio. The manufacturing capabilities, process expertise and backward integration that we have developed over the years provide us with a strong foundation to scale these businesses. With that, I would now request Mr. Pradeep Khannaar, CFO, to take you through the financial performance for Q1 FY 'twenty seven.

5:51 During quarter one of financial year twenty seven, the company reported revenue from operations INR $7.56 crore as compared to $5.51 crores in quarter one of financial year twenty twenty six, resisting a year on year growth of 37%. On the operating front, EBITDA stood at INR 111 compared with INR 69.5 crores in quarter one of financial year twenty six, representing a growth of 60.7%. EBITDA margin improved to 14.6% compared with 12.4% in the fourth quarter.

6:45 Coming to the bottom line, Patch stood at 64.5 crores compared with INR 34 crores in quarter one of the first quarter year, resisting a growth of 89.9 percentage. That margin consequently improved to 8.4 percentage compared with 6.1 percentage in quarter one of financial year twenty twenty six. The improvement in profitability reflects the benefit of higher operating leverage, better capacity utilization, improved product mix and continued focus on operational efficiency. Our support contribution also increased to 28.5 percentage of revenue compared with 24.4 percentage in same quarter of last year, reflecting the continued strength of our international business.

7:48 From a segment perspective, both pharmaceutical and chemical contributed to overall performance, supported by healthy demand, improved utilization and operational efficiency. Going forward, our focus will remain on sustaining the growth momentum through better procedure utilization, continued improvement in the product mix, operating efficiencies and prudent cost management. At the same time, we will continue to maintain a disciplined approach towards capital allocation and investment with a focus on projects offering attractive long term returns.

8:36 For financial year 2027, we remain confident of delivering 15% to 20% revenue growth with an EBITDA margin in the range of 14% to 15% and export country building approximately 25% to 30% of the revenue. With this, we now open the floor for questions and answers. Thank you. Thank you very much. We will now begin the question and answer session. May press star and 1 on the touch tone telephone. If you wish to remove yourself from the question queue, you may press star and 2.

9:24 Participants are requested to use handset while asking a question. Ladies and gentlemen, you may wait for a moment while the question queue assembles. The first question is from the line of from Wealth Catalyst. Please proceed. Thank you for giving me the opportunity. Sir, I just have two questions. So my first question is given that paracetamol has seen a relatively weak demand over the past few years, what is the current outlook for paracetamol, sir? So the paracetamol for the IOL, we started around two years back, 3,600 capacity, which we doubled which we tripled, in fact, last year.

10:11 And this was 10,800 MTPA. And this year, as of now, we are operating around 55% of this enhanced capacity utilization, which we expect by the end of this financial year, we will be reaching to around 70%. And if you see this paracetamol is contributing significantly in our non IV products portfolio. So the demand is growing and IOL is also getting its position into the paracetamol business verticals across the India. Also, we are getting traction in the exports. So we are foreseeing good demand in the paracetamol.

10:59 All right. So my next question is given the sharp rise in ethyl acetate and acetic anhydride prices following The U. S. Iran War, Could you please update on the current pricing environment for both these products? Due to what the prices were increased substantially in the month of March itself, but after that, it is stable to some extent. And now the prices are, you can say, not on the overturned from the last one month. So we think that ultimately the prices of it higher acetate and the delta between raw material and ethyl acetate will remain constant in upcoming quarters.

11:52 Thank you. The next question is from the line of from DD Capital. Please proceed. Hello. Hi, sir. Thanks for the opportunity. Hello? Yeah. Yeah. Yeah. You, sir? Yes. Yeah. So, sir, I... My first question is that export contribution increased to around, like, 28.5% of revenue for... Like, from 24.4% by o x. So, like, do you see this moving towards 30% plus of revenue in the terms, like in the near terms? Or would you prefer to maintain a more than in domestic export mix? So I think we are targeting this year around 25% to 30% range of the export revenue.

12:44 And we're hopeful that we will be achieving it. Hello, can help? Hello. Yes, yes, sir. Yeah. You heard it? Yes, sir. Yeah, sir. And my next question is that, like, with q one EBITDA margin at 14.6%, like, ahead of the FY twenty seven guidance range of 14 to 15%. So what are the key factors that could either sustain the margin above this range or lead to moderation in the coming quarters? We have achieved EBITDA margin 14.6 percentage in this quarter. And the key factor for this rising EBITDA margin are higher capacity utilization, better product mix, operational efficiency and also stronger non IOLCP segment API demand.

13:45 Also, some improvements in the finished product horizon. So these all factor are contributed in the EBITDA margin. Okay, sir. Understood, sir. Thank you so much and all the best. Thank you. Thank you. The next question is from the line of from Sequium Asset Management. Please proceed. Hello, sir. Thank you for the opportunity. So my question, firstly, is regarding the pharma, if I see in quarter one, FY twenty seven, there is around 42% of growth if I have to compare 37%...

14:30 42% growth if I have to compare Y o Y. So can I get the split of what percentage of this growth is due to volume growth, and what is the the percentage which is due to realization? We can't say exact numbers, but as you can say, majority number contributed by the increase in the volume of our pharma product as compared to final finished prices. The capacity utilization of API products have been increased including non IOLCP segment also. Hello. Yes, yes, yes. Got it. Got it. Got it.

15:21 So sir, we don't have the exact number, right? As to what person We have the number, but it is not a we are not so basically, we need to understand the sort of capacity utilization of all our assets is currently operating. So apart from Paracita Mall, most of the assets are operating around 80% to 95% capacity utilization. And I think that is the more important factor is contributing towards the operational performance of the pharma sector. Rather than going into the what sort of the prices and what sort of the this is happening because of the capacity utilizations, what is the mix. So I think we do not share that detailed information over the call. So I think we will not be able to share it. But as a broadly, if you can take it, this is mostly on the capacity utilization and better operational efficiency.

16:30 Okay, sir. Okay, sir. Got it, sir. Yes. And also, this is coupled with the increased export realization during this quarter. Okay. And would it be correct to say that the mix towards the regulated market has gone up in this quarter, I mean, aiding towards higher For EBITDA our other API product, it is, yes. Okay. Okay. Fine. I got it. Thank you. The next question is from the line of from NB Alpha. Please proceed. Yeah. Hi.

17:15 This is the opportunity. So I have two questions. One, your other APIs, the non ibuprofen, has now crossed a 200 crore kind of quarterly run rate, which is not seen in the last few quarters. So one, what is driving that growth? And second, of the 200 crores in the non IOLCP segment, how much of it is regulated market and how much more can we are lot in of market. Exports market. So That also includes regulated and nonregulated, but majority of it from the regulated market.

18:00 So as of now, not having the exact bifurcations, what is from regulated and what is from nonregulated export market, but majority of this revenue is coming from the regulated market. And this year, we achieved around 43% of overall the pharma from other than the ibuprofen non product portfolio that enables to crossing the 200 mark. And as we were discussing for last few quarters that we are looking to achieve in mid to near mid to short term range around having the 50% from ibuprofen and about 50% from non ibuprofen. I think that we are very near to achieving it. And this is the result of our efforts which we are putting in for last few quarters.

18:53 So I think we are very near to that. Got it. Yes. Just last question in the non sorry, the cash question in the non ibuprofen, what are the biggest API? Is it flopidogrel? Is it pantoprazole? Which one is? So so in in this segment, paracetamol, clopidogrel, pantoprazole, metformin, fenofibrate, levitracetam, these are our key key growth drivers and the key products. Got it. Okay. Thank you so much. Thank you. Thank you. The next question is from the line of Jaynaam Ghilani from Swan Investments. Please proceed. Hi, sir. Congratulations for a good set of numbers.

19:41 So since we guided CapEx of around 200 to two fifty gigawatts, how much would this be for our maintenance CapEx? And in terms of growth CapEx, would it be for the new greenfield segment you had got DC approval? Or would it be for some other projects? We borrow a cash flow of approximately 200 every year, which is planned with a long term view to support sustainable growth. Out of total CapEx planned, 60% is directed toward expansion and the new products And the remaining 40% goes to infrastructure, improvements for better efficiencies and reduction in cost.

20:31 So you see, we have from the last four, five years, we have growing a CapEx of INR 100 crores to INR 200 crores approximately every year. Okay. And sir, just to continue to the question of one of the earlier participants. Sir, in this quarter, how much cost would be attributed to the onetime inventory gain due to the surge in pricing because of the war? Your voice is not clear. We are not getting the questions. So just to continue one of the earlier participant's question. So in terms of profitability, how much was one time inventory gain due to the sourcing pricing for this quarter?

21:20 So basically, this is not due to the inventory gain. So we can have we might be having a little bit inventory gain during the later part of the last quarter around ten to fifteen days. But this quarter, we are not having the inventory gain. This is not the correct to allocate this profit towards that. This is the mix of our key factors having higher capacity utilization, better product mix. We also have some as over the operational efficiency and also better performance from the non IO products and increase in the export realizations in the non IO side as well. So I think put together all these factors resulted into the better performance.

22:10 This cannot be contributed or cannot be allocated against the inventory Okay, sir. That's all my side. Thank you. Thank you, gentlemen. Thank you so much. Thank you. A reminder to all participants, anyone who wishes to ask a question may press star and one on their touch tone telephone. The next question is from the line of from LGT Capital. Please proceed. Hello, sir. So my first question is non ibuprofen products increased their contribution to pharma revenue from 36% in q one FY twenty six to 43% in q one FY twenty seven. At what point do you see this portfolio become large enough to materially change the overall pharma margin profile?

23:05 See, what we are expecting in the near terms in this article should achieve around 50% overall contribution into the pharma. And that's a 50% we expect must be further divided into the domestic as well as the export. So I think while we will be achieving the 50% and also the export realizations will increase, this will change the overall contributions towards the bottom. Okay, sir. And my last question is with INR 26 crore invested in R and D during FY 2026, what are the key commercial opportunities emerging from your R and D pipeline? And what kind of contribution can we expect from these initiatives over the medium term?

23:55 So R and D, basically, this is not the one off expenses we are doing into the R and D. These are the regular expenses in the R and D. And this is not allocated to any specific development of any product or the... I think the more important is out of this fund, we have allocated some of the funds for the purchasing the new analytical techniques like we have purchased XRD machine, we have purchased LCMS machine, GCMS machine. So basically these are the high end machines, which we have purchased to analyze the impurity profile at a very stringent level. Okay, sir. Thank you so much for answering my question.

24:41 Thank you. The next question is from the line of Soumya from Mirwa Securities. Please proceed. Good afternoon, Thank you so much for the opportunity. So q one revenue grew thirty one seven... 37.1% year on year, while EBITDA grew 60.7% year on year. How much of the EBITDA outperformance was driven by operating leverage versus improvement in product mix? If you could throw some light on that. Increasing EBITDA margins, primarily due to the operational efficiencies of existing product with increased capacity utilization and there is no major product mix change except more penetration in the export market.

25:45 So the more EBITDA is primarily due to the internal efficiencies of the company, not primarily through the external factors. Okay, sir. Got it. So my next question is on PAT. PAT grew around 9089.9%, if I'm not wrong, year on year in Q1. Apart from the operating performance, were there any one offs or below EBITDA factors that contributed to sharp pad growth? Nothing. I would tell you, think. Routine per se, routine financial number, although there is no extraordinary thing which none except for internal efficiencies.

26:44 Okay. Okay. So my next question is on pharma. The pharma revenue grew 43% year on year in Q1. Could you help us understand whether the growth was broad based across the portfolio or concentrated in a few key products? Sir. Across the portfolio. It is across the portfolio because all the products, the maximum efficiencies with respect to utilization has been achieved. All right. So just the last question from my side. If the current diversification strategy plays out as planned, what would be a reasonable target for non ibuprofen contribution to pharma revenue by FY twenty nine?

27:34 And would you expect that mix shift to structurally less consolidated margins? FY 'twenty nine only after three to four years, we are expecting that non IOLCP segment will contribute around 50% to 55% of our API segment with good margin equivalent to the other IOLCP margins. Okay, sir. Thank you so much. I'll rejoin the question queue. Thank you. You. The next question is from the line of Malikwaria from three sixty one Mutual Fund. Please proceed.

28:27 Hi, sir. Malik here from three sixty one Capital. Thank you for the opportunity, and congratulations on a good set of numbers. So a few questions from my side. So we've seen growth, strong top line growth across all products. So just wanted some qualitative idea from your side. Why was this growth muted in the last few quarters? And you, of course, had indicated that demand is expected to revise and you had indicated about it. And what has led to this revival? And what is your visibility about how long will this strong demand sustain?

29:12 Will it be there for the next eight to ten quarters, twelve quarters? Any qualitative direction, sir, on the demand? Mohit, both top line and bottom line growth was due to higher volumes along with better pricing of our established products as well as growth in new products. Also in spite of increasing input prices, we are able to achieve these numbers by passing the increased cost to customers due to healthy demand, both in domestic and export market. So these are the main reasons for growth in both top line and bottom line. And taking into consideration of demand, prices and experiences, we expect revenue growth around 20% and EBITDA 14% to 15%.

30:12 This growth is based on better capacity utilization, product mix and operational efficiencies. And we have reasonable visibility into our order book for the coming quarter. So this gives us confidence in overall guidance for the year. We think this growth is sustainable for the whole year. Okay, okay, sir. And any guidance, on FY 2028? Will we be able to grow in similar run rate of 15%, 20% in terms of top line and also on EBITDA margin, Any guidance on that? Definitely, we have a plan to grow about 15% to 20% in top line and EBITDA to 15% to 17% in 2018 approximately.

31:07 Okay, okay. EBITDA margin you are slightly upgrading in terms of volume and better volume and pricing scenario? Actually, we cannot predict for '28 at this time, but we hope we will get better. Sorry for your voice. Malaji, this is on the basis of the current scenario. Suppose down the line six months scenario got changed, maybe what we are saying or maybe what we are saying may not be possible, but so this is as per the current scenario. So this is on the basis of the current plans we have. So the projections is on basis on that plan. Noted, sir. Noted. Okay. Okay. And also one question is sequentially, we've seen a decline in gross margin. So is my assumption correct that last quarter, we had some inventory gains because of which our gross profit was higher gross margin was higher? And this quarter due to higher input costs, the gross margins were relatively lower on a sequential basis?

32:18 Yes. I already explained to some analysts that in the March quarter, in for two days, we get inventory valuation benefit. But in this quarter, imported prices also increased and finished prices also increased. And margin is impacted due to certain variation in passing the increased cost to the customer because we literally tied up some prices to a big customer for their final prices. So all these differences are in a little bit exhausted and there is no future any major variation in the prices, input and output prices now.

33:17 Okay. And sir, in our other expenses, what would be the major cost because that has also increased on a Q o Q basis. So what would be the major contributor to this? In other expenses, we have major energy and logistic cost. So while there is a pressure globally, we have not seen any material impact. So prices of power cost, logistic cost increasing and increasing during the quarter, but we are able to pass on the major part of the increased cost to the customers.

34:02 So we have no major material impact on our business. Understood, Okay. And last question, In terms of our non ibuprofen that has been outperforming or growing faster than the ibuprofen portfolio. So going ahead also for your for the guidance you've given for FY 2027 and for future, which products would be the key drivers for this? Or will it be the entire non ibuprofen portfolio, which will see very strong demand? In the non IV portfolio, the paracetamol turnover contributed mainly for this increase.

34:47 Other products like clopidogrel and pantoprazole also contributed. So overall, all the products contributed in this line. Okay. So it's going to be a broad based growth going ahead also for the non IOLCP? Sure. We are such. Okay. Okay. And I mean, in terms of our regular... Regulated market exports, so any any new products which we have filed or are awaiting approval, anything, sir, any visibility on that? So basically, all the products got the CEP approval.

35:35 And apart from this CEP approval for all products, we have also got approval from the U. S. FDA for our spy products and two, three products are already in line up because the formulators has filed their ANDA. So once their ANDA will be approved, our products will also got approval from U. S. FDA. But CP is available for all the products. And additionally, we are getting into the other markets like NMP, China has approved our COVID-nineteen So we are targeting different regulated markets as well depending on the customer's requirement. And in past, our ibuprofen also approved in China. China, yes. The The next question is from the line of Nimesh Verma from AAS Capital.

36:40 Proceed. Afternoon, sir. Am I audible? Yes, please. Thank you for the opportunity, and congrats for the good set of numbers. So I have a few set of questions. The first one being ibuprofen continues to be an important part of the portfolio. With the broader API portfolio scaling up, how do you see ibuprofen share of total revenue evolving over the next three years? So as you rightly said, the ibuprofen is important part of our portfolio. Having said that, other products into the API, they are also performing. So we are a diversified API company. IBu is one of our products, but the fact is that it is one of our best products.

37:28 So the way we established the leadership in the ibuprofen, the same model, we will also be replicating in other products as and when the time is coming, the product is reaching to their scalability, achieving the scalability. So in other products, if you talk about many products, we are getting and all are performing well. Paracetamol is also contributing well because Clopy is also doing well. And in recent past, we also increased the capacity of three, four products. So going forward, the growth, what we're looking is the broad based growth involving all product portfolio, the better product mix.

38:17 Okay, sir. Got it. My second question would be, the company has been strengthening its backward integration manufacturing platform. Are there any specific intermediaries, KSMs currently being evaluated for backward integration that could meaningfully improve product economics? So honestly speaking, as of now, we are working on different streams in R and D, but probably we can give you some idea when we have some proof of concept ready with us after R and D development. Okay. Got it. And my last question would be with the 101 acre land parcel available for future expansion, should we expect the first major projects on this land to be commissioned within the current CapEx cycle?

39:04 Or is more of FY 'twenty eight, 'twenty nine growth platform? So again, like we are in the process of getting all the statutory permissions, which is underway. Parallelly, we are working on different product mix in our R and D section. And once we have very clear cut idea or proof of concept ready with us, definitely we'll start the work there and product will come at that site also. But probably not in this supply. Yes. Okay. Got it, sir. That's it from my side. Thank you for the opportunity. Thank you. The next question is from the line of Sheikh Mohammed, an individual investor.

39:51 Please proceed. Thank you very much for the opportunity, and many, many congratulations to the management for the excellent set of numbers. My question is, will Chemical business continue to perform the same or we have the big EBITDA margins of Chemical segment? The EBITDA margin of Chemical segment has been on upward trend in this quarter. So we have got better EBITDA margin in this quarter. And you see we have also increased our capacities both thylacetate and acetate and acetate acetate have done better in this quarter.

40:43 Increased exports in chemical segment also contributed for this. So means you see that same kind of performance may continue? Yes, sure. We expect it will continue. Sir, another question is last conference call we have mentioned regarding CMO space. So what opportunity we can fulfill or we can have in that space? We are working on that segment also. So I think I think once we have very clear that proof of concept ready with us, definitely we'll let you know, sir.

41:29 Okay. Sir, I can see that we have given the 2,600, 2700 full year top line guidance we have given. And by seeing this quarter, do you think we can outperform the previous guidance of both top line and bottom line? So I think the previous guidance when we given, we've taken into considerations of this whole year. So guidance will be remaining in the same line. However, we will be able having the current scenario, we think that we may cross that number. But we don't want to upgrade the guidance.

42:16 Okay. And sir, in terms of export, we have already achieved 28.5. So management is approaching defensive side because we have given 25% to 30% export percentage because already we have achieved 28.5% in Q1. Yes, that's correct. We achieved 28.5% and we are expecting around 30%. So if we say around 30%, it can be the 28% or it can be the 35% also. But this is sort of the mean number we have taken. And we hope we need to be correct when we say something rather than we don't want to caught saying something which is not able to achieve. So that is the philosophy we just communicated around 30%, and we are hopeful that we will be achieving it, maybe we can cross that also.

43:09 I think and moreover to this number, basically, we have export customers where we have agreement in quantities. So in some cases, most of the quantities has been dispatched to that customer. So that number increases, but there are chances that in the next quarter, that customer has a very little bit quantities out of the agreement. So these are some of the variables which can lead to the export number a little bit up and down. Okay. Sir, are we planning further regulatory approvals for the chemical segment or for other product approval in chemical segment? So we have basically two products. We are mainly doing the merchant sales. It is 100 used for the merchant sale.

44:03 And apart from that, we have the acetic anhydride. So we have all these two products already approved and recertification is there. And apart from that, we also introduced in the last quarter dry dry acid team. So we will be expecting the regulatory approval. For that product also. For this product also. It takes normally few quarters to reach the maturity of this product, and I think we will be getting this. That's sir. That's very good to hear. We are continuously improving our chemical segment and improving the export also. Sir, another question, maybe some tricky question, but I want to ask this question, last question.

44:54 SMS Pharma got hit in this quarter because their revenue and profit growth were hit. So can we think we have beaten them in terms of manufacturing technology? Thank you. As you said, Ricky, we don't know about others what they are doing and we don't want to comment on also. We are confident about our strategy, our manufacturing capabilities and operational efficiency. So we would like to discuss those things and we would like to limit ourselves to that discussions only. Okay, sir. This is the last question. Do we plan Sorry to interrupt you, Mr. Mohammad, but can you please rejoin the queue for follow-up as there are several participants waiting for that, Thank you. The next question is from the line of Abhishekandar from Value plus Advisors. Please proceed. Yeah.

45:51 Hi. Congratulations on a great set. I have question on Triacetin, the new facility that's commissioned. What is the capacity utilization that you achieved for Q1? For paracetamol? No, no. Triacetin. Triacetin. So Triacetin, I think this plant we have started for production in the May after May. So I think this was only one month of production in this, but yes, this flat slowly the capacity will increase because finally we are looking for the penetration into the market as well and accordingly we have to increase the production capacities. And at a steady state, what is the revenue potential of this, the 6,000 MTPA that we have?

46:41 Around INR 128 crores. Around INR 100 crores per year. Okay. All right. And in terms of the inputs towards triacetin, would it be the acetic anhydride itself? And what percentage of our proportion of our acetic anhydride would be captive consumption there? No, no, it is not acetic anhydride. It is acetic acid and glycerol. These are the two input materials for this. So acetic anhydride is not used in this product. All right. Okay. But about INR120 crores is the revenue potential of Triacetam? Yes. All right. Okay. And how does that compare with EBITDA margins of Ithacaetate?

47:32 This is not on the product basis. We disclosed the EBITDA margin, but on the segment basis we can discuss. Both cannot be compared because the usage are totally different for both the products. Thank you. The next question is from the line of Santosh Shetty from LSG Capital. Please proceed. So I just have a a couple of follow-up questions. Like, firstly, backward integration has been an important part of IOL's strategy. So are there any significant raw materials or intermediary...

48:19 Intermediates where you you are still dependent on external sourcing and could potentially integrate further? So I think metformin for manufacturing the metformin, which is not the integrated product in our portfolio and perhaps we'll not be doing the integration, backward integration for the same because we are depending for DCD as a raw material from the China. And I think not only the most of the companies are depending on the same from the China because this is geographically up level into that region. Okay, so great. And another question, IOL's overall export contribution has moved to 28.5%.

49:06 Is the higher export mix also resulting in a better product or a customer mix? Or is it the benefit primarily from higher volumes? No, it's a mix of everything. It's a mix of better product mix and it's a result of operational efficiency, better realization and the customers reach also. So this is a mixture of everything, not any any specific reason is not predominantly or dominantly can be contributed to this number. Okay. So that's great to know. It's positive that your story is reflecting into numbers, which we can see in our APIs. So all the best for the future. Thank you. Thank you. Thank you so much, Santoshiya.

49:52 Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to the management for closing comments. Thank you, everyone, for your questions and for engaging the discussions. To conclude, we are encouraged by the strong start to year FY 2027 and the progress across our pharmaceutical and chemical businesses. The increasing contribution from our non IOL roofing portfolio improving capacity utilization and strengthening our international presence to demonstrate that our diversification strategy is gaining meaningful traction. With our integrated manufacturing platform, diversified product portfolio, process capabilities and growing international footprint, we believe IOL is well positioned to build on the current momentum and deliver sustainable long term growth.

50:54 On behalf of the management, I thank all our stakeholders for their continued trust and support. We look forward to updating you on our progress in the coming quarters. For any further queries, please feel free to contact our IR team. Thank you, and have a good day. Thank you. On behalf of MUFG Investor Relations, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you, everyone. Thank you.