Q4 24/25

May 20, 2025

Summary

FY 2025 revenue grew 15% to INR 1,243.7 crore, while EBITDA rose 19% and PAT 36%. Kathua contributed INR 36 crore in Q4, with FY 2026 revenue guidance of INR 400 crore, including GST benefits.

Ladies and gentlemen, good day and welcome to the Innova Captab Limited Q4 and FY 2025 earnings 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. Should you need assistance during the conference call, please signal an operator by pressing Star then Zero on your touch-tone phone. Please note that this conference is being recorded. 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 the guarantees of future performance and involve risks and uncertainties that are difficult to predict. I now hand the conference over to Mr. Ayush Kumar Garg, Head IR. Thank you, and over to you, sir. Thank you, Saisha. Good morning, everyone, and thank you for joining us on the earnings call today to review the operational and financial performance for Q4 and FY 2025. We have with us Mr. Vinay Lohariwala, Managing Director, Mr. Lokesh Bhasin, Chief Financial Officer, and SGA, Investor Relations Advisor. We trust that you have had a chance to review the financial results and investor presentation, which have been made available on the stock exchanges as well as on the company website. With that, I will now hand over the call to Mr. Vinay for his opening remarks. Thank you, and over to you, sir. Thank you, Ayush. Good morning, and thank you all for joining us on today's earning call. Let me begin by saying that I am pleased with the way Innova Captab has performed throughout the year. We closed FY 2025 with total revenue of INR 1,244 crore, delivering strong growth of 15%. For Q4, revenue stood at INR 315 crore, reflecting a robust year-over-year growth of 20%. A major milestone for us this quarter was the launch of commercial production at our new facility in Kathua, Jammu. I would like to take a moment to extend my sincere gratitude to the entire execution team, whose dedication was instrumental in bringing the critical project to successful completion. Their relentless efforts, coordination, and commitment to excellence played a key role in ensuring that we met our goals on time and to the highest standard. We have started offering new products and dosage forms from this plant, and the initial traction has been encouraging. This gives us added confidence in the long-term potential of this facility. Let me now take you through the performance highlights across each of our business areas. CDMO business. Our CDMO business made significant strides this year. We expanded our client base to over 200 customers, which includes some of the largest players in the Indian pharmaceutical market. Our product portfolio has grown from 2,900 plus products last year to over 3,300 this year, a clear testimony to our commitment to quality, innovation, and customer centricity. The business recorded a year-over-year growth of 12% in Q4 and 6% for the full year. Going forward, our strategy will center on acquiring new clients while also increasing wallet share from our existing partners. New product and dosage form launches from the Kathua plant are expected to further accelerate our growth in this area. Domestic Branded Generics. Our Domestic Branded Generics business delivered a stellar performance, with year-on-year growth of 30% in Q4 and 21% in full year. We continue to expand our distribution network, which now includes over 6,000 distributors, up from 5,000 last year. We also significantly enhanced our market reach, now touching more than 220,000 pharmacies and stockists compared to 150,000 in FY 2024. Our product offering in this business increased to over 750, up from 600 plus last year. Our focus in this area remains on supporting existing distributors and retailers while engaging new partners and channels to boost market presence. International business. On the international front, Innova now has a presence in 30-plus countries, including regulated markets such as the U.K. and Canada. This presence was 25-plus countries last year. The business posted solid year-on-year growth of 47% in Q4 and 25% for the full year. Looking ahead, we will continue to expand our footprint in both regulated and semi-regulated markets while also broadening our product offering to cater to diverse international demands. Sharon Bio-Medicine. Sharon closed this year with revenue of INR 197 crore. Sharon has a robust presence in regulated markets and supplies both formulation and API to some of the most well-known pharmaceutical companies globally. We aligned strategic initiatives and leveraging synergy with Innova Captab. Sharon is well positioned for sustained growth and enhanced value creation in the year ahead. Our strategic initiatives have started taking shape, and we are well positioned to enter the next phase of our growth journey. The newly commissioned Kathua plant is set to unlock a broad spectrum of opportunities, expanding our product portfolio across business areas, fostering new partnerships, and deepening engagement with existing clients through enhanced wallet share. We are already witnessing strong interest from our current and prospective partners, reaffirming the potential of this facility. Our commitment to innovation is equally reflected in our R&D infrastructure. Our dedicated laboratory and pilot-scale manufacturing setup in Baddi, Himachal Pradesh is recognized by DSIR, Department of Scientific and Industrial Research. Further, our upcoming facility in Panchkula, Chandigarh will strengthen our capability with a focus on the development of complex generic and differentiated formulation, an important step in enhancing our innovation pipeline. With multiple growth levers in place, including capacity expansion, a broadening product base, deepening market penetration, and a robust R&D engine, we are confident in our ability to deliver long-term value to our all stakeholders. We are proud of the progress we have made and remain committed to executing our strategic roadmap with discipline and agility to drive sustainable growth across all verticals. Thank you once again for our continued support and trust in Innova Captab. I now hand over the call to Mr. Lokesh to take you through the financial performance in more detail. Thank you, sir, and good morning, everyone. I will now take you through the financial highlights for Quarter 4 and full year FY 2025. Quarter 4 FY 2025. Our consolidated revenue stood at INR 314.7 crores, registering year-on-year growth of almost 20%. CDMO clocked INR 154.8 crores of revenue with year-on-year growth of 12%, supported by sustained traction in existing products and the contribution that we got from our new Kathua, Jammu facility. Domestic Branded Generics business delivered a robust growth of 30% to INR 61.7 crores, fueled by expanded product portfolio and increased market penetration. International Branded Generics business delivered year-on-year growth of 47% to INR 43.4 crores, driven by product and market expansion. Sharon recorded a revenue of INR 54.9 crores with year-on-year growth of 15%, which was chiefly volume driven. We witnessed decent growth in our absolute EBITDA, which was INR 51.1 crores vis-à-vis INR 43.8 crores of previous quarter, Quarter 4 FY 2024, recording a growth of 17%. This was largely driven by improved gross contribution. The EBITDA margin for the quarter was 16.2%. The PAT rose by 3% year-on-year to INR 29.6 crore of Quarter 4 2025 PAT after absorbing the impact of depreciation and financing costs accruing from the Kathua, Jammu plant, which was commercialized in January 2025. Consequently, PAT margin stood at 9.4%. On a full year FY 2025 basis, the total revenue from operations grew 15% at INR 1,243.7 crores, led by volume growth across business areas. The business mix for the year was CDMO, 53%, Domestic Generic business was 18%, International Branded Generics was 13%, and Sharon contributed 16%. In absolute terms, business area-wise revenues for the financial year were CDMO, INR 659.9 crores. Domestic Generic business, INR 230.7 crores. International Generic business, INR 156.3 crores, and Sharon, INR 196.8 crores. Coming to profitability, EBITDA registered stellar year-on-year growth of 19% to INR 198.2 crores, almost touching INR 200 crores, owing to improved gross contribution. EBITDA margin also increased by 50 basis point to 15.9%. The PAT witnessed robust growth of 36% to INR 128.3 crores, mainly driven by higher EBITDA, coupled with reduced finance costs. PAT margins improved by 160 basis point to 10.3%. Our balance sheet has also shown continued resilience with the strategic decision taken over last three years now being in execution. We believe our performance metrics will further improve in coming years. With this, we would like to conclude the presentation and open the floor for question and answers. Thank you very much. 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 their 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. The first question is from the line of Amey Chalke from JM Financial. Please go ahead. Yeah. Thank you for taking my question, and congrats to the management on good set of numbers. Sir, I have a first question on the Jammu plant. Is it possible to give how much was the contribution for this quarter, and any change in guidance for the next year for the revenues coming in from Jammu plant? Hi, good morning, Amit. Yes. During the quarter 4 FY 2025, see our Jammu plant started commercialized operation from 14th of January 2025, and for this quarter 4 2025, Jammu plant contributed a revenue of around INR 36 crore. Coming to the next question, as of now, we maintained our guidance of that Jammu plant is poised to achieve a revenue of around INR 400 crore for this financial year FY 2026. Okay. Second question I have is on the cash flow. This year, our operating cash has increased with more than double digit, but working capital has eroded the cash from as in the cash from operation has gone down YOY. Any reason for the working capital decrease there? Do you expect it to normalize in the next year? Yes, Amit. You are right that this year our working capital investment has slightly increased. There are major two reason for it. Number one is increase in operations, and the working capital required to feed that increase in operations was invested. At the same time, since Jammu has just started, that initial working capital to start the plant was required. We are hopeful that in coming times, this working capital will return back to the normal days. Sure. Okay. Thank you. I will join back though. Thank you so much. Thank you, Amit. Thank you. Thank you. The next question is from the line of Vidit Shah, Spark Capital. Please go ahead. Hi. Thanks for taking my question. My first question was on the Jammu plant. Because of the tensions going on in the state right now, are we seeing any impact on operations up there currently? So as you all are aware that there was blackout in entire almost northwestern India, including our actual location, say, Chandigarh. So the tension was there that facility is near border. There was some restlessness, but we have the full faith in our Indian Army and our government, and everything goes in a well-mannered. In future also, we have the full faith in our army and the government, and hopefully nothing wrong will happen. But in the current quarter, we've just seen a couple of days of blackout and no major impact on operations. So there was no shutdown in our facility for even a single day. Okay. We work as usually. There was no hurdle to our facility. Okay. Understood. My second one was on the gross margin that we've seen improve both YOY and quarter-on-quarter. I think over the last couple of years, this is the highest ever gross margin that we've reported. So can you help us understand what is driving this improvement in gross margins and what could be the sustainable level going forward as well? With the gross margin improvement, there were a couple of reasons, which is our operational efficiency, better product mix, making the best optimum use of the resources that we are having. These are the soft and the subjective reasons why our gross margin is improving, coupled with the best product mix that we have there. In coming times also, we estimate that this is going to maintain its same trajectory. Okay. But when we talk about segmentally, would margins be similar across, let's say, Sharon and the CDMO business in terms of gross margins, or would there be a big deviation in these? Vidit, we normally do not track gross margins and margin profile at our business areas level. Okay. No, I mean, Sharon is a separate entity itself, right? That's why I was asking whether compared to Yes How would Sharon's gross margins fare? Yes, you are right. If I talk about ICL manufacturing capability and Sharon manufacturing capability, yes, Sharon is having a slightly better gross margin, but they are having a different target market because they are majorly into regulated market in exports. Yes, they are having slightly better gross margin profile than ICL manufacturing capabilities. Okay. Just the last one on Sharon. You in your opening remarks mentioned that it is well-positioned for growth and value creation going forward. If you could just shed some light on what are the management's plans with regards to driving growth in Sharon and what geographies and products are likely to drive growth. That is it from me. Thank you so much. Yeah. In Sharon we are currently, say, most of the revenue is coming from Europe and Canada or the other regulated market like Australia. We will focus in Sharon in all these market. We are trying to expand the wallet share from the existing customer and the onboarding of the new customer in the regulated market. Okay. Thank you so much for answering this. The best of luck and good luck. Thank you. Thank you. Participants who wish to ask a question may press star and one at this time. The next question is from the line of Avnish from Bekraya. Please go ahead. Hi. Thanks for taking my question. I just have a couple. One, Lokesh, for you. If we have to estimate, let's say, the volume growth in Baddi, which is ex-Jammu, and you said that Jammu contributed INR 36 crore. If I remove INR 36 crore from the standalone P&L, both from the top line and from the gross profit, it seems like the Baddi volume growth was around 12% to 13%. Is this calculation right, or is there some error in it? If I talk about at a full year level, ICL growth, ex-Jammu, was around 7% at a revenue from operation level. No, I was more interested in the quarter for the fourth quarter. Fair enough. Yeah. If I talk about Q4, if I exclude my ICL Jammu revenue part, the growth was around 4%-5% on a year-on-year basis. Yeah. That's the revenue. I was looking at, if you remove the Jammu contribution from the gross profit. Actually, see, I would just like to highlight that, see, we cannot see ICL Baddi operation in isolation. As we briefed earlier in our previous calls also that there is certain level of cannibalization at initial level, wherein we are moving our revenue from our existing Cepha facility in Baddi to our new upcoming facility in Jammu of Cepha block. There is a certain element of cannibalization from Baddi to Jammu at an initial period itself. That impact is also reflected in our ICL Baddi operation, if you see it as standalone. But as I submitted, it cannot be seen in isolation per se. Okay, understood. If we look at, let's say, when you guide for INR 400 crores revenue from Jammu, that is over and top of the non-Jammu revenues that we closed on this year. Right? So your non-Jammu revenues this year were close to about INR 1,208 crores. What kind of growth can we expect in this? And is INR 400 crores over on top of that? So you are right. So out of my INR 1,244 crores, my non-Jammu was around INR 1,208 crores. Yes. The way I look at it, we are maintaining that we should be growing in early teens for our existing facilities. Okay. Plus over and above the revenue that we will get from Jammu plant. That is right. So if you assume about, let us say, early teen for ex-Jammu business and the INR 400 crores over and above that is how we should understand it. True. Okay. Last question from my side. How was the GST benefit accounted in this quarter? I mean, the benefit is in gross profit or in the other income category? Please help us understand that. Yes. So the way we accounted for, with the blessings of Statutory Auditor, we have recorded our GST benefit as other operating income as a part of revenue from operations. Understood. This is very clear. Thanks, Mr. Lokesh, and thanks, Vinay ji. Thank you, sir. Thank you. Thank you. Participants who wish to ask a question may press star and one. The next question is from the line of Saket from Sagari Capital. Please go ahead. Hi, am I audible? Yes, sir, you're audible. Yeah. My first question is pertaining to the CDMO segment. It has shown around 6% of growth. Can you help me break up this into volume and, say, price growth terms? My major revenue growth for CDMO business or for a manufacturing capability business is mainly driven by volume growth. What could be that, sir? Because I think we have seen that API prices have been downtrending. Was it like there was price degrowth as well, or what was the break-up? See, if I talk about a year-on-year basis, rather, I would like to emphasize that if I see my growth at a volume level, I would like to see at a manufacturing capability level instead of a business area level. On a full year level, we have got a volume growth of around 7%-8%, and which is phenomenal, the growth that we have recorded at our ICL manufacturing capability level. Whatever price impact was there, due to product mix and other variable reasons during the year, it has been knocked off. There may be a slight variation of 1% or 2%, but on a majorly it is driven by volume growth. Okay. Thanks for confirming this. Sir, on top of that, your Domestic Branded Generics has also done quite well. Now at 21%, how do you break that up into, say, typical IPM drivers? Like how much was NI contributing, how much was price growth, and how much was volume growth? Majorly by volume. Even in Domestic Branded Generics, the major growth is driven by our volumes through new products and penetrating into new markets or getting deep into our existing markets. Okay. And sir, what would be the guidance for Domestic Branded Generics business, say, for the coming up? Because it would, say, behave slightly differently from the typical manufacturing business, right? Any different color or growth number that you might want to share for this segment? The way we see it should be in the line with overall company growth itself. Okay. Which is mid-teens that you said, right? 12%, 13%, is that the fair one non-Jammu that you just mentioned, is it? When I see Jammu, I would just like to explain on that part. See, business area is my front end, which drives my sales. At the same time, Jammu is a manufacturing capability. So my manufacturing capability of Baddi as well as Jammu feeds my all three business areas, which is CDMO, Domestic Branded Generics, and International Branded Generics. The way my Baddi manufacturing capability is working to feed all these three front-end business areas, the same way Jammu is also coming up and it will feed my all three business areas. Either it is CDMO, Domestic Branded Generics, or International Branded Generics. Got it. Sir, for Domestic Branded Generics, you do not source anything from outside because there might be some product where you may not have enough scale. Is that 100% is in-sourced for both international branded as well as domestic branded? Talking about Domestic Branded Generics, yes, there is a certain element of items which normally Innova do not produce that we procure from our third-party outside vendors. That is not that much. It is hardly 20%-25%. Okay, got it. Sir, in terms of, let us say, just order of profitability. Is it like Sharon would be the highest and then followed by branded generics, and then CDMO would be the least profitable within these four segments. Is it a fair order, or how would that be? Sir, as I submitted earlier also, normally we do not track business margins at our business areas level. If I talk about at a gross margin of a manufacturing capability, yes, Sharon being in regulated markets, they generate slightly better gross margins. Okay. Thanks, sir, for patiently responding, and I appreciate this, and best of luck, sir. Thank you, sir. Thank you. Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question is from the line of Miten Lathia from Fractal Capital Investments. Please go ahead. Good afternoon, sir. Three questions on Jammu. First, while you recognize the GST benefit as other operating income, could you clarify if it is amount that is paid and then claimed as refund or it does not need to be paid at all, it directly is accounted for as income? Second, our current mix on the CDMO side is, I understand that it is around 50-50. Why have you chosen to increase the mix of acute at the Jammu facility? If you could spend a couple of minutes to thought process around that. Number three, you guided for about INR 400 crores of incremental revenue from Jammu in FY 2026. If you could sort of help us understand how is it that you have that visibility of that revenue. Thank you. Sir, answering to your question number one. The way this GST incentive works is that we pay and we take the input credit of GST as for normal business practice, the way it is done for other manufacturing areas. But as we are supported by a central government scheme, whatever GST that we have paid on our total domestic sales, at the end of the quarter, we will file a separate refund return to central government to claim that incentive back from central government. So there are two process. Number one is the normal GST process will remain same as other geographical location for a manufacturing business. Added step is that whatever GST that we have paid on sales invoices of domestic sales, we will file the refund return to central government at a quarter end. Hope this satisfy your question. Yes, sir. Okay. Thank you. Thanks. Yeah. The second question regarding the selection of product and facility. In Baddi, we are already into the general facility and cephalosporin facility, and this is extension of our product basket in the category of the other antibiotic like beta-lactam and penem, and then a general category of LVP. Respules is there, and then the water for injection. The strategic decision is taken based on the requirement in the market and our present capability. Yes. The third bit on the visibility around the INR 400 crore number. So as on date, we are very much confident that this number is achievable and being four facility. So if we say 400 crores, sometimes it looks quite aggressive. But if we divide in the four plant, so it's not one facility, but there are four blocks. So it's like 100 crore, and if each quarter if we see, then it comes out to be, let's say, 25 crore each block. So then the number becomes smaller. The number is given on the fair assessment and estimation, and that's why we are giving that number, and we are very confident to achieve that. Good. Sir, I had a couple more. I'll come back in with you. Thank you, sir. Thank you. Thank you so much. The next question is from the line of Divesh Takyar from fintress capital. Please go ahead. Good morning, sir. Thank you for the opportunity. Am I audible? Yes, please. Yeah. I guess, in the second last quarter, you have guided for INR 2,500 crore of revenue in next 3 years. Are we still on that? Are we confident on that? Yes, Divesh. The way we see it over long term, we are very much confident we should be maintaining the CAGR of 25% revenue growth over next 3 years. Okay, sir. My next question is regarding, as and when we utilize our Jammu plant more better, our margins and even the GST incentive that we have, are margin getting better in next three years to, I guess, 17%, is that right, sir? While we will not like to comment on the exact number, but yes, by increase of operations, getting benefit of operating leverage, the GST benefit, our operations efficiency is coming due to economies of scale and getting new products. Yes, the margin is bound to increase. Okay. Thank you, sir. Thank you so much. That's it from my side, sir. Thank you. Thank you so much. Participants who wish to ask a question may press star and one at this time. The next question is from the line of Vidit Shah from Spark Capital. Please go ahead. Hi. Thanks for the follow-up. Just one clarification, sir. This INR 400 crore number that you have guided from Jammu, does that include the GST benefit? If so, how much of that? Yes. When we say the number, yes, normally, as it is a part of our other operating revenue, that GST number is included in our overall INR 400 crores as of now. Would you be able to quantify that number, sir? Sir, it should be in the range of INR 30 crore-INR 35 crore. Okay. Understood. The INR 36 crore of revenue that we did in Q2, what level are we breaking even at? Are we breaking even yet in Jammu? Sorry, can you please repeat your question? You were not audible. Sorry. What level of operations would you break even at at Jammu? Okay. I think we should be EBITDA positive. EBITDA neutral, sorry, EBITDA neutral by around sale of 50 to 55 crores. Okay, got it. Thank you so much, sir. Thank you. Thank you so much. The next question is from the line of Harsh from Bandhan AMC. Please go ahead. Yeah, thank you. Good morning. Just one or two quick clarifications. Can you help us understand the API pricing scenario as of now? I think there was some related question as well earlier. Most of this year growth is pertaining to volumes, but just from a fourth quarter perspective, if you could help us understand at a broader scale, and as things stand today, at least from an API pricing perspective, how things are and anything specifically from a cephalosporin perspective. More or less flat. Hi, Harsh. If I talk about quarter four and as of now status, at a broad level, at a weighted average level, I think more or less the prices are more or less at a flat level. There may be some prices up and down, but if I see from a company's perspective, they are not having as much impact as of now at the current level. Sure. Anything incrementally from cephalosporins or Sorry, I didn't get your question. Pricing in terms of the cephalosporin as well, they are also broadly consistent on a quarter-on-quarter basis or anything incremental? In cephalosporin the prices are slightly lower side as well as in the beta-lactam. But overall, if we see, one thing is that it is difficult to measure, and overall, we see that there are few area where the price has been increased and there are few area where the price has decreased. Sure. And lastly, from an FY 2025 perspective, CDMO is somewhere around 6%-7% growth rate. So what would be the volume number on a broader basis for this entire year? I understand there will be new introductions and pricing. But just that volume number, would it be a double-digit volume number, early teens, mid-teens volume number? You are talking about volume growth? Harsh, are you talking about volume growth? Yes, sir. Volume growth for FY 2025 for the CDMO business. Overall reported number is 6%-7% growth for FY 2025. What would be the volume growth number? Would it be close to high single digits or low double digits? It is slightly better than the reported number growth. That is why we are saying that even for the full year, the price impact is flat. It is just not only the function of the price growth. Once we capture the volume versus average price, then the product mix change is also a factor. Okay. Broadly, we should work with a similar number for the volume growth as well as compared to the reported. Yes. Better than the value growth, the volume growth is one or two percentage points better. Okay. All right, sir. Thank you. Thank you. Thank you. The next question is from the line of Amey Chalke from JM Financial. Please go ahead. Yeah. Thank you for giving me opportunity again. I just had one question on the upcoming R&D facility in Panchkula, Haryana. It says that we would like to develop generic and complex generic products and some of the products are like immediate release, super bioavailable, bioavailability capsules, nano size formulations, et cetera. So what are the markets are we going to target with these products? Amey, as you know that at Sharon, we are working in the regulated market space, and the thing was that in Sharon, we do not have any independent R&D setup. Innova is helping, we are taking the regulated market project and developing at the Innova R&D, and then we are doing the exhibit batch at Sharon to file in the regulated market. One is that. The other one is that even we are open for the domestic market and the ROW market. Overall, once the product is developed, it can be filed in the various market as per the requirement. Right. These will be our own IP products even for regulated markets, you mean to say? Yes. In regulated market, there are the two type of business. One is the tech transfer, the other one is this one, where we have our own IP and own developed dossiers, and then we have the commercialization. But the commercialization will happen through partners, you mean to say. That we will not be doing it on our own. Yes. We collaborate with the partner, then the filing is being done. After that, once the required approvals is received, then we can do the commercialization. Sure. After acquiring Sharon Bio-Medicine, we have done a few of the product from Sharon Bio-Medicine to the regulated market on this theme only. Right. Is there supposed to be any impact on overall company margins on increased spend on this R&D facility? It helps in the incremental business. Being, say at INR 1,200 crore, in future, let's say if we reach towards INR 2,500 crore, then these businesses like INR 50 crore, INR 100 crore, will have a less impact on the overall margin. Got it. So you don't expect immediate impact. Maybe once the scale is there on the top line, then the impact would be negligible is what you're saying. Yes. Overall, our strategy is to efficiently, effectively use our manufacturing facility with a more value-added product in a regulated and semi-regulated market. So our R&D facility will help in achieving that. All right. Thank you so much. I will join back. Thank you. Yeah. Thank you. Thank you, sir. Thank you so much. The next question is from the line of Miten Lathia from Fractal Capital Investments. Please go ahead. Yes. Thank you, sir, again. Just one question on Sharon. While you said that in regulated markets, you want to broaden the customer base, but we have had almost four years of flat revenues at Sharon. Is the current product portfolio something that can drive a three-year sort of growth outlook? Or if you can sort of spell out what you are thinking about that business over the next three years or so. Yes. As you are aware that Sharon being in CIRP, there were no new initiation, new steps has been taken. Once we integrate one and, I think, June- Two years. One and a half year back. Yes. Then we start taking new projects and all that. That will mature in the coming quarters and coming year, as there is a long lead time for long gestation time for in a regulated market. We see that all positivity should reflect in this upcoming year. Okay. Just to be clear, you are saying that in these two existing markets of Europe and Canada, you want to deepen the relationship with the existing customers offering them more products. Is that what you had mentioned earlier or no? Yes. Onboarding of the new customer as well as onboarding of new product with the existing customers. Or let's say, what we used to do four years, five years back, revival of that business is also the part of strategy in Sharon. They have actually lost products within customers, or they've lost customers altogether in the last four years? Is that- Let put it this way. The company being in CIRP, there was some hurdle in acquiring the new business and all that. Once the Innova name is there, the customer is also having a good confidence and all supply side hurdle has been removed. We are focusing on that business and doing our all efforts to revive and grow at a positive growth rate. As you are saying, that is absolutely correct that revenue is almost flat. But if you see the EBITDA and profit margin, that has been consolidated in a very good manner. Understood, sir. Thank you. Thank you. Thank you. The next question is from the line of Divesh Tated from Fingus Capital. Please go ahead. Yes, sir. Thank you for the opportunity again. I just had one last question. Sir, I wanted to know what could be the run rate for depreciation going forward. Over and above existing depreciation rate, the Jammu plant would be having a depreciation of around INR 24 crore-INR 25 crore per annum. Okay. Our existing business will not have any such, or they will have depreciation, sir? They would continue the existing depreciation rate. There may be certain maintenance CapEx, but the depreciation rate would be in the same lines that they are having right now. Okay. Thank you, sir. Thank you, sir. Thank you so much. As there are no further questions from the participants, I now hand the conference over to management for closing comments. Thank you everyone for joining us for the earning call. We appreciate your time and showing interest. In case of any queries, you can get in touch with our investor relation team. We look forward to meeting all of you over the next call. Thank you very much again. Thank you. On behalf of Innova Captab Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line.