Ladies and gentlemen, good day, and welcome to the Glenmark Life Sciences Q2 FY 2024 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode. There will be an opportunity for you to ask questions after the presentation concludes. If you need assistance during this conference, please signal an operator by pressing star and then zero on your touch-tone phone.
Please note that this conference is being recorded. I now hand the conference over to Miss Soumi Rao, General Manager of Corporate Communications. Thank you, and over to you, ma'am.
* Is there a comma? Yes. * Wait, "forward-looking statements". * Hyphenated? Yes. * Wait, "stock exchanges". * Plural? Yes. * Wait, "website of the company". * Yes. * Wait, "recording of the transcript". * Yes. * Wait, "earnings conference call". * Yes. * Wait, "quarter ended September 30th, 2023". * Yes. * Wait
These statements are based on current expectations, forecasts, and assumptions that are subject to risks, which could cause actual results to differ materially from these statements, depending upon our economic conditions, government policies, and other incidental factors. Such statements should not be regarded by recipients as a substitute to their own judgment.
The company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. Our actual results may differ materially from those expressed in or implied by these forward-looking statements. With that, I invite Dr. Yasir Rawjee to say a few words. Thank you, and over to you, Doctor.
Soumi, thank you. Good evening, and welcome, everyone, to our Q2 Earnings Call. Before I get into the discussion of GLS performance, let's just take a couple of minutes to discuss the economy and industry trends that are likely to have a direct or indirect impact on the business. The economic landscape remains a little uncertain, with the Chinese economy slowing down, which does have impact on the chemicals industry. Plus, the inflation across the globe continues to challenge economic stability in various parts of the world.
The geopolitical situation also could have some impact on oil prices, and so that could have some impact on our business, but we've seen the worst, okay? Overall, if you look at the economic and geopolitical landscape, there are a few moving parts that will impact our business, can impact our business, but largely, you know, things should be okay for our industry. Coming to the industry itself, the demand landscape is very promising at present.
Demand has been strong for us across various regions, with the U.S. experiencing a surge in demand on the back of a stabilized pricing environment. Europe and Latin also continue to showcase sustained momentum along with our India business. The supply dynamics also show encouraging signs, marked by enhanced stability in supply chain and oversupply from China on chemicals, resulting in better commodity and intermediate prices.
It reflects a resilient and positive pharmaceutical environment, you know, positive environment for our industry. That said, we need to stay vigilant and adaptive to potential ramifications of the ongoing geopolitical and economic turbulence in the coming quarters. As far as GLS's performance goes, we are pleased to share that we achieved sales of INR 595 crore during second quarter, continuing the growth trajectory with close to 17% growth.
Growth has been driven by 20% growth in our generic API business, which to some extent was offset by a temporary dip in the CDMO revenue. The generic API business was driven by both the Glenmark Pharma business, which grew close to 50% YoY, as well as consistent upward momentum in the external business.
It is crucial to highlight that the dip in the CDMO business in Q2 was temporary, and we expect demand to pick up in the second half of the current financial year. If you look at our regional distribution, except for slight degrowth in Japan and ROW, all markets have performed exceedingly well. On the product pipeline, we have added three new products to our pipeline, with one high-potent API and two complex APIs.
Coming to the high-potent API pipeline, we now have 12 products with a total addressable market of $21 billion at the front end, and three products have been validated so far. Now before I conclude, it is important to address the Glenmark Pharma's recent decision to divest its majority stake in Glenmark Life Sciences. Glenmark Pharma will be divesting 75% stake in Glenmark Life Sciences to Nirma Limited.
This transaction, we believe, is a beginning of a new chapter for GLS as Nirma Limited becomes the principal promoter of the company. We believe this strategic move is poised to accelerate growth and will help create more value for our stakeholders in the long term. I would like to highlight that we will continue to operate as an independent API company, and our core mission remains even with the change in ownership.
Strategy-wise, nothing changes on the business front for the short term, but I would surely like to mention that there will be focus on additional growth levers going forward. Therefore, I see this event as an opportunity to further strengthen our position in the API industry and continue the strong growth trajectory with healthy margins. The transaction, of course, is subject to necessary regulatory approvals.
More insights will have to wait for strategic direction to be finalized with the new promoter once the transaction is completed. I urge for your patience till such time. However, I would like to highlight that it is vital to underscore that the core strategy of GLS will remain intact, with any new strategy developed being only incremental to our core approach.
Looking ahead, we have good visibility for the second half on the generics API side, as well as CDMO, which gives us the confidence of delivering strong growth in the latter half of the financial year as well. This will translate into a strong FY 2024 for us, provided the external environment remains conducive. With that, I now invite our CFO, Tushar Mistry, to discuss the financial performance for the quarter.
Thank you, Dr. Yasir. Hello, and good evening, everyone. Welcome to our Q2 FY 2024 Earnings Call. I would like to briefly touch upon the key performance highlights for the quarter and half year ended September 2023, and then we will open the floor for questions and answers. We had a good growth this quarter, with revenue from operations at INR 595 crore, a growth of 16.9% year-on-year, and 6.9% on sequential basis. As Dr. Yasir mentioned, the growth was driven by strong uptake in generic API business.
The gross profit for the quarter was at INR 322 crore, at 19.7% year-on-year growth. Gross margin for the quarter was at 54.1%, which expanded 120 basis points year-on-year. Sequentially, gross margin looks low, but please understand, Q1 was a quarter where all things played well for us. EBITDA for the quarter was at INR 172 crore, up 12.3% year-on-year. EBITDA margin for the quarter was at 18%, driven by better gross margin and higher employee expenses.
Gross margin was driven by product mix, whereas higher employee expenses was driven by regular incremental cycles, increment cycles and certain talent retention costs, which is expected to continue at similar levels in the near term. However, it is important to note that we continue to have one of the lowest employee cost to revenue ratios in the industry. Depreciation and amortization is in line with the expense than last year.
The PAT for the quarter stood at INR 118 crore, a growth of 26% year-on-year, with PAT margins coming at 19.9%. Let me quickly discuss half-yearly numbers. Revenue from operations for half, first half, was at INR 1,124 crore, a growth of 20.5% year-on-year. Gross profit for H1 FY 2024 was at INR 56 crore, up 23.1% year-on-year. Gross profit margins for H1 FY 2024 expanded by 250 basis points year-on-year to 55.6%. EBITDA was at INR 367 crore, up 18.6%, with EBITDA margins remaining steady at 31.3%.
PAT for H1 was at INR 257 crore, up 17.7%. Moving on to the segment performance for Q2 FY 2024, the generic API revenues grew by almost 20% to INR 530 crore, driven by strong growth in GPL business, as well as sustained growth in external business. CDMO business revenue was subdued at INR 37 crore, driven by low demand for one of the products. However, as Dr. Yasir mentioned, this was temporary, and we would have, we have good demand visibility for it in the half of FY 2024.
Looking at the therapeutic mix, CVS and CNS continued to lead the growth during the quarter, with both therapies contributing 60% to the top line. R&D expenditures for the quarter was at INR 37 crore, which was 3.1% of our sales. Touching upon the balance sheet and cash flow movement, starting with working capital. Working capital remains stable during H1 FY 2024 at 130 days. All the working capital components remain stable for the first half. Coming to capital expenditures, CapEx for H1 was at INR 63 crore.
I would also like to share an important update on Solapur projects. The engineering work has started for construction of phase one of 200 KL in Solapur. We continue to remain a net debt-free company, and I'm happy to inform you that we have generated strong cash from operations of INR 162 crore in first half, with cash and cash equivalents of INR 443 crore on the books as of 30th September 2023.
To conclude, a strong demand scenario, coupled with better visibility for H2 FY 2024, makes us confident of delivering growth, strong growth in FY 2024. With that, let us open the floor for Q&A. Thank you.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question, you press star and one on your touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question.
Ladies and gentlemen, we will wait for a moment while the question queue assembles. Once again, ladies and gentlemen, you may press star and one if you wish to ask a question. We have the first question from the line of Nitesh Dutt from Burman Capital. Please go ahead.
Hi, thanks for the opportunity. I have a question on our parent business. Can you give some color on how the business will evolve, if there are any long-term contracts, or whether the business will keep down in future? Any perspective on that?
Parent business will continue. Of course, we have been operating at an arm's length, so in that sense, nothing changes, right? It's a significant business. There is an agreement that this business will continue for a period of five years, okay? Just like Glenmark Pharma is an important customer for us, Glenmark Life Sciences is also an important supplier to Glenmark Pharma. We supply more than 65 APIs to Glenmark Pharma. We expect that this business will be robust and will continue.
Of course, we had guided in the past that with the sort of divergent strategies of Glenmark Pharma and Glenmark Life Sciences, we expect the overall contribution to our business from Glenmark Pharma to come down over a period of time, but we will continue to be an important supplier to them.
Correct. Can you share some details on the five-year agreement? Is it sort of the guarantee of any kind of agreement or any kind of growth embedded in that?
Yeah. Like I said, right, our business with Glenmark Pharma has been an arm's-length business. We, of course, need to be competitive, right? So far we have been competitive and have retained a significant business. Also, you need to realize that most of the business that we are doing with Glenmark Pharma, over 95% of the business is a regulated market business, right? With the number of approvals that we have over multiple markets, right, this is a fairly sticky business and will continue.
All right. Thank you again.
Thank you. The next question comes from the line of Charul Agrawal from Bank of America. Please go ahead.
Hi, thank you for taking my question. Sir, could you help us to understand how the CDMO business will move from here? You have mentioned that some projects have picked up from Q2 onwards. Can you share updates on those?
See, CDMO has been a little bit lumpy, right? In the past, you've seen this as well. The good news for us on CDMO is that the current projects are on track. You know, on account of, you know, slow demand on one of the projects, right? One of the commercial projects we saw this quarter, a dip in this quarter.
Overall, this business will continue. The other thing on the CDMO business is we've had a lot of traction from new customers on new projects, which we are currently qualifying, you know, where, you know, our API is being currently qualified. The outlook on the CDMO business for us is going to be pretty strong going forward, right? In about a year's time, we should see at least another two to three projects added to the basket.
Thank you for this. Could you also help me understand if among the new capacity that is planned, the downstream capacity, is there any capacity that will be devoted towards CDMO? If so, how much would it be for CDMO?
As far as capacity goes, it's an overall capacity build. If you recall, in Ankleshwar, we had taken up this one large block of 400 KL, of which 100 KL came online in Q4 of last year. You know, by this Q4, we will have another 208 KL built out. That's going to be significant. Now, this will be both for the generic as well as the CDMO business, so we don't have dedicated capacities for CDMO.
So far, none of our CDMO customers have asked for dedicated capacity. It's only one project, one count, one current commercial project that has a dedicated capacity, and that is by virtue of the technology that is in use for that project. Overall, for our CDMO projects, we don't have dedicated capacity.
Thank you for that. One last question from me. Tushar, if you could help us understand what will be the CapEx guidance and when would the effects come for some CapEx plan? Has it already coming or is it supposed to come from next quarter?
Charul, we have been guiding to INR 100 crore-INR 200 crore of CapEx for the current year. We'll be more towards the INR 200 crore of CapEx in the current year, is how we are looking at it, CapEx for the current year.
Thanks, Charul. Regarding the OpEx, has it already been included in the plan, or will it come over in the next quarter?
happening in Ankleshwar, also in Dahej, and also a bit of Solapur that I explained in my opening remarks. We are starting on Solapur as well now. Part of that is dedicated towards that as well. * Wait, "Ankleshwar, also in Dahej, and also a bit of Solapur". * Should there be a comma after "Dahej
Charul, does that answer your question?
Charul, you are not audible at the moment if you are speaking.
Yes, that answered my question. Sorry, everyone.
Thank you. Participants, if you wish to ask a question, you may please press star and one. The next question is from the line of Sumit Gupta from Motilal Oswal. Please go ahead.
Hi, good evening, sir. Sir, two questions. First is regarding the employee expenses. From the resume, like, nearly 300% jump in the employee expenses as percentage of sales. Why is this so, and what is the trend you see going forward? Second question is on the line of, like, EBITDA margin. In 2Q, on like this one trend, that Q, 2Q in general is moderate with respect to other quarters. Why is that so? Thank you.
Actually, the answer for both is the employee cost itself. Your question on employee cost, as I again mentioned in my opening remarks, there are certain talent management costs. There are certain expenses that we have incurred on bonuses to some employees, which will continue to have some impact in the near term. That's what we are seeing for the current year, the impact will remain. That also answers your EBITDA margin question, where the margin has come to 29% compared to around 7% in the past.
Okay. This trend would, like, continue in 2024 and 2025? Just to say 29% of EBITDA.
This is for the current year that I'm saying, not for the. We'll see for the next year, we'll guide as we come closer to that time.
Okay, sir. Thank you.
Thank you. To ask a question, ladies and gentlemen, you may please press star one. The next question is from the line of Bala Murali Krishna from Oman Investment Advisors. Please go ahead.
Hi, good evening. Regarding CDMO business, one project is getting delayed because of regulatory approvals since last few quarters. Could you please update on that, on the status on that project?
Yeah. See, from us, from GLS's perspective, API has been supplied, okay? The customer has taken validation batches already at their end. They are looking to enter 50+ markets here, right? From a regulatory perspective, they are, you know, they are aligning all their, you know, their regulatory filings. As a result of which, there have been delays. It is on track. It is going well.
Okay? We do expect it to come, hopefully by the end of this year. Okay. Like I said earlier to Charu's question, is that we have added, you know, we are actively pursuing other CDMO projects, which are moving much faster. In about a year's time, we should see another 2-3 projects added to our pipeline. Currently, our entire CDMO business is driven by three commercial projects. Another two or three will make a significant impact on our CDMO revenue.
Yeah, okay, fine. Regarding this margins, so when does for, I mean, for opening 4-5 years, when the GPL, GPL, so any get some impact on the margins, or we can maintain the same 30% kind of margins maybe over three or four years down the line?
Yeah. Again, right, the GPL business is an arm's length business, right? We continue to remain competitive, you know, on that business. The margin profile is an overall, you know, it's a function of our mix, right? Considering that we've got a fairly large number of launch molecules coming up, right, plus CDMO business growing relatively, we expect that the margin profile will at least stay, you know, in the same region.
Okay. Regarding this, the coming of the 100 KL capacity addition in this H2, so we can see an incremental revenue from this, like, in-house commercial, in-house?
No, we have planned part of it for backward integration and part of it for, you know, intermediates. The demand is high, right, for both segments, the API. as well as intermediates. We expect that, you know, it'll have a fairly quick uptake on utilization, the new capacity that will come online by Q4.
Okay, perfect. Thanks a lot.
Thank you.
Thank you. To ask a question, participants, you may please press star one on your touch-tone phones. The next question is from the line of Saion Mukherjee from Nomura. Please go ahead.
Yeah, thank you. Good question. I wanted to understand, you know, this arrangement with Glenmark. You have a history of five years for off-take. Are there any other clauses, like non-competition clause? Can Glenmark, you know, produce some of the APIs for its in-house production and also on pricing perspective?
Yeah, the non-compete is there for both Glenmark Pharma as well as for Nirma as well. Glenmark Pharma will have to restrict from doing the APIs that Glenmark Life Sciences is doing. And so will Nirma have to avoid doing any formulations that Glenmark Pharma is doing using Glenmark Life Sciences APIs?
Okay. For, let's say, if your pipeline projects of Glenmark, Glenmark can develop its own API for its internal use. Is it restricted to the market that Glenmark Life Sciences is currently catering to? Even for the specific markets, product or five years, is there a restriction there?
The pipeline product can be done by Glenmark Life Sciences or by Glenmark Pharma, depending upon how the arrangement goes. There is no restriction there.
I'll just try to clarify. On the pipeline, right, Glenmark Pharma has already qualified quite a few GLS APIs, so that will come under the agreement. Anything new, right, that they want to develop, right, that they can go ahead and develop because I had explained in one of my earlier calls that there is a divergence in the portfolio approach of GLS and GPL, right? If we are not going to develop certain APIs for our own reasons driven by our business, right, they are free to go ahead and develop those APIs because it doesn't anywhere fit in our, you know, bucket.
Okay. Have you sort of shared any guidance?
Shared what? Could you please repeat? Your question was not clear.
Yeah, sorry. But I was asking EBITDA margin guidance for this year and for FY 2023.
We stick to our guidance that we have been giving in the past for a long-term, from a long-term perspective, that both on the revenue as well as on EBITDA, revenues will be within the mid-teen range, and the EBITDA margins will be around 30% kind of range over the long-term period.
Okay. Do you think, you know, you'll have 30% even with FY 2024?
This year, as I mentioned, there are certain employee-related expenses also coming in, which will have some temporary impact. Other than that, we will remain within that range.
Okay. This quarter's EBITDA margin is representative of what we should expect for the full FY 2024. Is that right?
You can assume that, yes.
* But the speaker said "Glenmark". * I will keep "Glenmark". * Wait, "Tushar Mistry is the Chief Financia
Excuse me, Mr. Mukerji, the line for you is unclear at the moment. Could you please repeat your question?
Yeah. Am I audible now?
Yes. This is better. Please go ahead.
Yeah, sorry. I was asking from a strategic perspective, what, you know, under the Glenmark group, what all, you know, you think you can do, which would possibly you could have pursued under, you know, within the Glenmark framework? If you can elaborate that, is it the CDMO piece, you know, coming out of the generic company or anything like that, if you can, you know, elaborate strategically, how things change for Life Sciences?
"...stay on track..." (Yes). "...through on that." (Yes). * *Wait, let's double check the "before" placement.* "...time before we..." (Yes). * *Wait, let's double check the "some" placement.* "...us some time..." (Yes). * *Wait, let's double check the "us" placement.* "...give us some..." (Yes). * *Wait, let's double check the "you" placement.* "...because you realize..." (Yes). "You know, and..." (Yes). "...becom It's very difficult to speculate at this point, right, in terms of what we will be doing, but I can say that we expect to do more for sure.
When you say more, is it more on the CDMO side, you know, some developing relationship with innovators? I mean, anything on that color you can give? I mean, at this point, you know, is there anything that you're bringing to the table which can add?
That's what. See, CDMO and API are parts of our current strategy anyway, right? I mean, and we, like I explained earlier, right, we've been getting significant traction on CDMO even now, right? Given the fact that, you know, it's a more sticky business, right? I mean, that's something we would definitely continue. What I'm referring to is things that, you know, in the past that we did not, right? These are the things that we would kind of explore with the new promoters, right, to see if we can expand in different directions.
Like I said, too early to sort of put something on the table because we'd really like to have this to be a joint, you know, kind of have a clear understanding between us and the new promoter. You know, give us some time and, you know, we'll certainly come back. The key thing is that we first need to go through the regulatory approvals.
Perfect. Okay. Thank you, sir. Thank you.
Sure.
Thank you. Participants who wish to ask questions may please press star and one at this time. Next question is from the line of Saad Shaikh from BOB Capital Markets. Please go ahead.
Yeah, hi. My question was with regards to the PLI benefits we have recorded in the past of few quarters. Since we are being disassociated with the parent and we have the PLI mandate, how these benefits will be going forward? Can you comment on that?
Sorry, you're saying the PLI benefit going forward?
Yes, after Nirma takeover.
The current understanding is that the PLI benefit will continue till the time we are a part of the GPL group. Beyond that timeline, we are still exploring what possibilities will be there and how it will pan out. We don't have the clarity yet on that. Nevertheless, even if it has to be there, it's a 100-150 basis points of impact, which we are sure we'll be able to cover otherwise.
Okay, thanks. On working capital, is there any chance to improve from there on it?
No, I think the efforts to keep on improving on that continues. But as Doctor explained, the geopolitical scenario currently is so volatile that we don't want to be very thin on the working capital. We rather would invest some part in it and sell some of the inventories rather than, you know, do too much of correction there. We are being cautious there. So we have not increased the working capital from the levels that we saw in March. We have remained at that level. But we don't expect it to go significantly high from here or anything that can significantly change from here.
Oh, thanks.
Thank you. Ladies and gentlemen, to ask a question, you may please press star and one on your touch-tone phone. The next question is from the line of Charul Agrawal from Bank of America. Please go ahead.
Thank you for the follow-up. I wanted to clarify regarding the EBITDA margin guidance for FY 2022.
Yeah, Charul, go ahead. I just gave that to Saad, that the long-term margin remains to what we have been guiding in the past of EBITDA margin in the range of around 40%, and that will remain. In the near term, you will see some dip happening in the current year because of the employee expenses that we saw. Otherwise, from an overall long-term perspective, it should remain in the range that we have been guiding.
Even for the current year, given that we are expecting CDMO to pick up over the next quarter and employee costs are already elevated this quarter, do we expect, like, do we not expect margins to recover from this level?
Again, it's a matter of product mix and CDMO playing out. I mean, CDMO is something that we are expecting. We'll see how that plays out. We are not saying that it may or may not have an impact on the margin, but it is all a matter of timing. CDMO is not something that we are, you know, absolutely certain that this will happen at this point of time. There's a lot of regulatory involvement there, so it has to play out as per the timelines, right?
You had smaller, but you were in advanced discussions with two other customers, and for those, you had supplied validation batches and expected to commercialize into it. Is it still very uncertain or what is the outlook on those?
No, Charul, it's not uncertain. The reason we were able to so categorically put it on the table now is because we have already supplied validation quantities, right? That's why I said in a year from now, we would expect another two projects, 2-3 projects to come in, right?
Let's realize that once we supply validation quantities, there's an approval cycle like Tushar was explaining. Okay. Whether it, you know, when it impacts our numbers, is something we would not be able to say for certain. Whether it hits us and whether it benefits us in Q4 or, you know, whether it goes to Q2 of next year, is something that needs to be seen, right?
Okay.
That's where.
You know, we can't be absolutely certain that, you know, these two new projects that are likely to happen soon, right, will kick in this year or by next year. That's the point.
Thanks, that answers. That's my question.
Sure.
Thank you. Participants, you may press star and one to ask a question. Ladies and gentlemen, to ask a question, you may please press star and one. The next question is from the line of Naman Bhansari from Perpetuity Ventures LLP. Please go ahead.
Hi, sir. Thank you for the opportunity. I just have one question with Nirma coming up on the board. How do you see the management role change, or would there be, or it be totally same board, or how would the roles change differently?
Sure. The management will continue, Naman. Management, there is no change in the management that we see. Obviously, the representation of Glenmark Pharma on the board of Glenmark Life Sciences will go down, and there will be representations from Nirma coming on board of Glenmark Life Sciences. That is what we see as a change that is happening. As far as the senior leadership team and the other members of the Glenmark Life Sciences will continue as they are operating today. There's no change in that.
Okay, got it. Second question would be on the synergy. You know, there might be a chemical business going on. Will you see any other further synergy to our business? Secondly, on one point, you mentioned that you would be open to exploring other scheme of opportunities which you haven't done previously. Are there any such opportunities which could be open, opening up with the promoters?
See, Naman, from a long-term growth strategy perspective, we'll have to, you know, really wait for us to interact with the new promoter and get the strategies in line with them. As of now, our strategy that we have been talking about in the past remains. Whatever will come, will come on top of that, so it will only be attractive to our current strategy. We would really urge that we'll have to wait till the time all the regulatory approvals come, all are done, and then we are able to then interact with the new promoters to give some strategic, you know, way forward on this.
All right. Sure. Lastly, just to point out the oncology and complex business which we are looking into. When do you see the major pickup coming in in this particular segment of business?
See, onco has picked up really well. Like we explained last time, we have nine molecules already in onco in the pipeline. Okay, three have been validated already, okay? We continue to see a good amount of traction in all of them. Of course, they are at various stages in development. Some, you know, have a sort of immediate offtake in terms of validation. Others, because they are newer APIs, right, are actually being seeded with customers.
They are in various stages of the development life cycle. The good thing is that I think we made the right play at the right time with onco. With our onco facility also coming up in time, we are able to validate, you know, the new APIs in time to be able to supply to customers. Commercial will sort of take its time, but, I mean, some of them will happen pretty soon.
Got it. One last question. We are getting a INR 67 crore number this quarter, so I can see that Q2 is high for us, but it tapers down for the remaining quarter. Are we expecting such a phenomena this year also, or do you think we forward as per today?
Sorry, Naman, you are again talking about the employee cost part?
Yes. Yes. I was saying that in Q2, generally, we are seeing a high number, but over the next second half of the year, it generally tapers down a little bit from that case.
You will see a bit higher than what it has been in the normal trends in the past. You should expect some higher costs for the current year.
Got it. You mentioned some talent acquisitions going on in that space. Can you start with any specific ones?
Sorry?
You mentioned in the opening comments that there are some talent acquisitions going on with the talent.
No, I mentioned not talent acquisition, talent management, I mentioned. It is more to do with from a management perspective, not from an acquisition. No new, no further acquisitions that we are looking at from a talent perspective.
Okay. Got it. Thank you.
Thank you. To ask a question, ladies and gentlemen, you are requested to please press star one. The next question is from the line of Bala Murali Krishna from Oman Investment Advisors. Please go ahead.
Hi, thanks for the opportunity again. Regarding the premium business, if we can commercialize the upcoming projects, what would be the peak revenue potential we can expect in the second or third quarter?
Mr. Murali Krishna, you'll have to repeat. I could not follow the question, please.
Yeah, in the CDMO business , if you can commercialize the upcoming projects, which you are talking about in the upcoming year. What is the peak revenue potential in the second quarter from the CDMO business ?
Currently, we do about INR 150 crore with three projects, right? The two projects that I mentioned, plus the one that has been taking some time. If we add another three projects, we would expect revenues of a similar nature.
Thank you.
Thank you. Participants, you are requested to please press star one if you wish to ask a question. Ladies and gentlemen, we will take that as our last question for today. On behalf of Glenmark Life Sciences, we conclude this conference. Thank you all for joining us. You may now disconnect your-