Q1 24/25

Aug 9, 2024

Summary

Q1 FY25 total income rose 37% YoY to INR 286 crore, while PAT grew 68% to INR 29.5 crore. Jammu capacity and domestic CDMO demand underpin growth plans, with API prices showing signs of stabilization.

Ladies and gentlemen, good day and welcome to Innova Captab Limited Q1 FY 2025 Earnings Conference Call hosted by JM Financial. 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 touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Amey Chalke from JM Financial. Thank you, and over to you, sir. Amey, your line has been unmuted. Thank you. Good morning, everyone. Welcome to the first FY 2025 earnings conference call of Innova Captab Limited. Joining us today on the call are Mr. Vinay Lohariwala, Managing Director; Mr. Lokesh Patel, Chief Financial Officer. I would like to hand over the call to Mr. Vinay Lohariwala for his opening remarks. Thank you, and over to you, sir. Thank you, Amey. Good morning, everyone, and thank you for joining us on our earnings call today to discuss our operational financial performance for Q1 FY 2025. On this call, we have been joined by Mr. Lokesh Patel, CFO, and SGA, our investor relations advisor. I hope everyone has got an opportunity to go through the financial results and investor presentation, which has been uploaded on the stock exchange and our company's website. To talk brief about the recent development of the company, Akhil will take you through the operational and financial highlights. The Indian pharmaceutical industry is growing at a healthy rate, fueled by a growing demand for therapeutic treatments, trending generic markets, and government efforts to enhance drug accessibility. This presents a great opportunity for CDMO and companies like us to put in work. A brief overview of the industry. We are an integrated pharmaceutical company in India with a presence across the pharmaceutical value chain, including R&D, manufacturing, drug distribution, marketing, and exports. We cater to more than 100 clients, supporting half of the 50 pharmaceutical companies. We adhere to and hold various global registrations like WHO GMP, Indian GMP, UK MHRA, to manufacture a wide range of products in oral, semi-solids, ointments, dry powder injections, dry syrup, and liquid orals at our four facilities consisting of five separate independent blocks, which are located in Baddi, Himachal Pradesh; Dehradun, Uttarakhand; and Taloja, Maharashtra. Our in-house R&D strength of our company drives our new product development and trials. As the pharmaceutical industry faces challenges in evolving quality and regulatory standards, we at Innova view these challenges as opportunities. Prioritizing quality and adhering to the stringent protocol of our both domestic and international customers, Innova has consistently met all quality and regulatory requirements since its inception. We are committed to further enhancing its performance. Now coming to our core major area of business performance. Number one, CDMO. Our extensive CDMO formulation capability enables us to provide a diverse range of dosage forms, including oral solids, oral liquids, dry syrup, ointments, and injectables. CDMO sector has strong demand. We see promising growth potential in the CDMO market. Two, domestic branded generic. For domestic branded generic business involve manufacturing and distribution of products that distribute across India via a network of distributors, wholesalers, and pharmacies. Number three, international branded generic. Our international branded generic business emphasizes exports to emerging and semi-regulated markets, with recent expansion into the U.K. and Canada. We have exported products to 25 countries and we continue to expand. Dry powder inhalation. CDMO formulation manufacturing capabilities including API manufacturing. Cater to both domestic and international markets with a special focus on export growth, including countries like U.K., Canada, Europe, Australia, Korea, Vietnam, and America. Recent development. Our greenfield expansion in Dharuher is progressing as planned, and we expect that commercialization in Q2 FY 2025. Revenue will start kicking in from Q3 FY 2025, with margin improvement become noticeable from the second year onwards. For this year, the company is also anticipated benefits from the New Central Sector Scheme for Industrial Development of Jammu and Kashmir. The Jammu facility will have four independent blocks in tablet pressing, penem, and BFS, and will focus on manufacturing of diverse range of products within oral semi-solids, dry powder injectable, dry syrup, DFAs, large volume parenterals, and respiratory respules products. Through this expansion, we look forward to enhance our capacity to five facilities having nine independent manufacturing blocks with an expanded product range, which would include DFAs, large volume parenterals, respiratory respules, oral semi-solids, ointments, dry powder injectable, dry syrup, and liquids. In addition to our current R&D center in Baddi, the company is also setting up a new R&D center in Panchkula, Haryana, which will specialize in branded and complex generic products. Over the past three, four years, our revenue has grown at a robust growth rate of 35% CAGR. With the addition of our new Jammu facility, we are optimistic about maintaining this strong growth over the next three to four years. As a company, we are committed to driving sustainable growth by exploring new opportunities and concentrating on regulated products. Indian pharmaceutical companies are poised for substantial growth in the mid to long term as both domestic and global marketplaces look for dependable and sustainable suppliers like us. I now request Mr. Lokesh Patel to take you through the operational and financial performance of Q1 FY 2025. Over to you, Lokesh. Thank you, sir. Good morning, everyone. Q1 FY 2025 has been a good quarter for us, as our key operational and financial metrics witness healthy growth. Q1 FY 2025 highlights are total income came in at around INR 286 crores, with a growth of 37% on a year-over-year basis and 10.5% on a quarter-over-quarter basis. Details are as follows. CDMO contributed 57% for this quarter. Domestic branded generics is at 17%, international branded generics is at 11%, and the balance of 15% is contributed by Sharon. Our EBITDA stood at INR 54 crores with a growth of 37% on a year-over-year basis and 1% on a quarter-over-quarter basis. EBITDA margins stood at 15.1% as against 13.9% in Q1 FY 2024 and 15.7% in Q4 FY 2024. Profit after tax for the quarter was INR 29.5 crores, with a growth of 68% on a year-over-year basis and 3% on a quarter-over-quarter basis. PAT margin stood at 10% as against 7.5% in Q1 FY 2024 and 10.9% in Q4 FY 2024. At a group level, our capacity utilization level stood at approximately 52%. With this, I would like to conclude the presentation and open the floor for questions and answers. Thank you very much. Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to mute handbeats while asking a question. Ladies and gentlemen, we wait for a moment while the question queue assembles. The first question is from the line of Tushar Bhatia from Kamyaank Wealth Management. Please go ahead. Yeah. Good morning, sir, and thank you for the opportunity. I just wanted to know your core business. Can you please rank your business as per the EBITDA margin? And in your branded generics, what are your plans going forward? That was my first question. Sure. As you said, our EBITDA margin normally stands in the range of 13%-15% depending upon the seasonality impact. Is this the question that you are asking? No, sir. I'm just asking, you have four segments, like CDMO, domestic branded generics, international branded, and regulated generics. Just wanted to know what would be the EBITDA margin profile for all this, and, hello? Tushar, we normally do not track our area-wise EBITDA margin. Am I audible, sir? Yes, you are, Mr. Tushar. Yeah. Can you share the EBITDA margin of a particular business? Sorry, Tushar. You are constantly cracking. Can you please repeat your question? Yeah. Sir, I wanted to know the EBITDA margin of your business. Yes. Tushar, I will tell you that we do not track our EBITDA margin at a business area level. Fair enough, sir. EBITDA margins are available at an entity level. Okay. In terms of your branded generic business, what are your plans going forward? How are you planning to scale that up and how are you planning to scale up your Sharon business? We also said that we have focused on all four areas of our business operations. That includes our branded generic business and Sharon Bio-Medicine business as well. Okay. We have the Pan India presence in our branded generics. That we do the marketing name of Univentis. We have it from approximately 300% state boards there. We continue to grow at a rapid speed. In past also, you see we have grown at a CAGR of 30% plus. We will try to maintain that and we will focus more on the remote location, A-line schemes and better product marketing. Let me come to the Sharon Bio-Medicine. This is the fourth quarter that is consolidated into our generics, and the CLM is also consolidated for the fourth quarter. There also we have a main focus for the regulated markets. As you know that most of the sales, CLM of segment in Sharon Bio-Medicine comes from the regulated markets. We are developing new products and starting HPD process there with Sharon Bio-Medicine as well. I think this answers your question. Yeah. Sir, I just wanted to know, in terms of for our tablets and capsules, why are the utilizations so less compared to others? Is it reason for the category? You are asking me about the other category of products or the other CLM? No, compared to the other medium, only the tablets and capsules, the capacity utilization is comparatively less, in the range of 50% or so. I just wanted to deliberate that. Yeah. So, the tablet, capsule manufacturing is oral product dosage is in a complex project form. And these project forms are again widely available to most of the manufacturers. Since they are all speed or interchangeable, they are the much instrument as compared to tablet format. Due to that, tablet, capsule complexity of the achievement, seeing the higher percentage utilization and I can say that you can see that at 45%, 42% roughly. Okay. No, sir. Thank you. I will get back to you for the same. Thank you. The next question is from the line of Mr. Ratia from Wanani FC. Please go ahead. Yes. Thank you, ma'am. Audible. Yes, sir. Can you hear me now, audible? Yeah. Thank you. Just on this API pricing situation, I think this has been discussed many times earlier as well, but just to throw some more intimate light in terms of what is happening on the ground. For the pricing, stability-wise, as well as chronic API, so regulated API, something on that front that will help us more understand about this messaging on the ground going forward. You are asking about the current trend of our API pricing? Yeah. Because there might be some issue in the quality. The clarity of quality. Is our quality any different, sir? Could you repeat my question? Okay. Sir, the management line is not clear. I'll disconnect the line and add the secondary number. Ladies and gentlemen, please wait. The management line will now be disconnected. Ladies and gentlemen, the management line has been reconnected. Over to you, sir. I guess no question. Just in terms of API pricing, I think this has been coming up every quarter, and if you could just give some more intimate color for all the API pricing right now, and API with more quality concerns in terms of especially acute API versus chronic API, what's your take over there? Yes, sir. As far as our API pricing are concerned, as we already informed earlier, we have been seeing a declining trend in the API pricing over the last three, four years, especially post-COVID. Talking about this quarter, we are seeing a more or less higher stabilization level of APIs. We are still observing it as the time proceeds. As of now, it seems that it is in the stabilization phase. Is the price hike or the move significantly different for acute API or chronic API, or things are more or less the same? For us, it is more or less the same. From API procurement, both are more or less the same for us. Sir, in terms of your API sourcing requirement, could you help us to break up in terms of what is mostly raw materials and packages you procure from China as of today? Because pricing has come down to an extent, have we changed the sourcing to increase? As of now, if I look at our sourcing location, approximately 70%-80% of our material is sourced through domestic channels only. That is what has been the case at least 2 years back only in terms of percentages. But this year showing that it is 70%, 80% domestic resource. Sir, a lot of PLI is offered by the Government of India, and the China substitution is now started. We think that the trend of our procurement from domestic will increase. Okay. In terms of your gross margin, let's say just over this last 4 quarters, the trajectory that we see, is it because of some more color of a few reported business objects in the gross margin that continues to be a function of both a mix, let's say, between the CDMO business or it has more to do with, let's say, the generic and branded business growing by a higher percentage of sales, or it has more to do with the pricing mix. Those would be the possible levers that came out of the gross margin. If you compare the all four segments of the business, we have a better margin in our domestic branded journey, in international branded generics, compared to our CDMO business. But we always say that we have the focus on all the four categories equally. The state will be that the business composition will remain more or less the same. There could be a difference in one or two percentage basis. Let's say if you have the- 58%. 50.1%. 50.1%. We have 57% CDMO space. That will remain 58%, 56% in the future also. The all four category is growing at a healthy pace. Our blended margin is somewhere around 15%. In fiscal year also, we are in the same range of, say, 15% plus or minus 2%. Okay. Thank you. Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question is from the line of Ankush Mahajan from Axis Securities. Please go ahead. Mahajan. Hello. Yes, sir. Good evening. I'm Arjun. Ankush, go ahead. Sir, thanks for providing me the opportunity, and congrats for a good set of numbers. Sir, I will try to understand when we say that CDMO part, that is in the domestic business. How it is different from the other companies? Let's take the example of Sun. Divi's is also a CDMO player, the largest player. Laurus is also the largest player. They are offering their services to the innovators in the U.S. market. I will just try to understand the nature of the CDMO business, sir. If you throw some more light, I really appreciate, sir. Yeah, go ahead. If you see that our Innova Captab business is focused on the CDMO business, that is domestic CDMO. Here we do have our own generic product development, and then we offer to the various clients on B2B basis. Whereas if you see that the company you name, that is, CDMO services is offered on international business basis to the innovators. That is the difference. Basically, our business model in Innova is like we are offering services to the domestic pharmaceutical companies. We have our own R&D, we develop our own products, and then we offer on B2B basis. If you see our Sharon innovating profile, there we have a strong international CDMO business. There we are offering the product to the U.K. or the Canada market. Fine, sir. In domestic CDMO, what exactly the services that we offer to the domestic clients? We have our own finished product development, and we offer that finished product to the Indian marketing company. Mm-hmm. I see. What we are observing, sir, there is a continuous fall in the agency, the sales table basically for the domestic CDMO business. How do you see, sir, in upcoming future, and where is the opportunity lies? You are talking about our number? Yeah. What domestic CDMO from last three years? Yeah. Currently, for domestic CDMO, we have the two facility in Baddi. There are three blocks in two facilities. These three blocks, one block is established in 2007, another was established in 2010, and then the third block was established in 2017, expanded in 2021 again. From the capacity point of view, we have a very high capacity utilization in two of the blocks. That is the 2010 cephalosporin block and 2007, the original block from where we have started our company. That is in the range of, say, 70% or somewhere 80%, 82%, 85% also. We have the spare capacity only in the 2017 and 2021 block, the general block. That is also in the tablet, capsule. If you see that there is a decline in the price of API, and due to this capacity constraint in the two of the blocks, or we can say the 60% block, we have no spare capacity. This capacity will be, say, cephalosporin capacity will be relaxed with the Jammu. Once we commercialize the Jammu, our capacity concern will be removed. Then, let's say, we can grow at a better, higher rate. If still we see quarter-on-quarter comparison, there is a 10% approximately increase in our volume. Okay. Quarter-on-quarter, 10%. What kind of CapEx we have done in Jammu plant, sir? Jammu plant, the CapEx will be approximately INR 450 crores. INR 450 crores. Asset turn we are looking, sir, in this plant? So sir, in past, we have talked at 4 to 5 times asset turn. Here we have four blocks, independent four blocks for BFS, cephalosporin, Vigilex and Penicillin. This block is capable to produce a top line of, say, INR 2,000 crores. Nice. Yeah. Down the line, say 4, 5 years, once the block is stable, it can do the top line of INR 2,000 crores. But we see, say, a utilization of 40%, 50%. That figure come around at INR 800 crores to INR 900 crores in a period of 3 to 4 years. I see, sir. Sir, if Sharon is doing quite strong, good things, what is the opportunity that we are looking in Sharon in the international market and with the Innova and we can say that international, how do you see, sir? As I explained earlier, the core of- Yeah. The core of Innova Captab was, say, the domestic CDMO. We entered into the export business a bit late at 2012 and 2013. Our site was then approved by various regulatory authorities, including the USGMP. We get our USGMP certification in 2017, then in 2019, it was again revalidated. From the cephalosporin block, we start entering into the regulated market as well. We commercialize our product in the U.K. market or the Canada market from our cephalosporin Innova Captab. Then, say, this opportunity of Sharon Bio-Medicine come to us, and we look from the regulated business prospecting. There we have the general block, and we find that strategically fit to us. We have the DSIR approved R&D center. We have developed a few molecules there to roll to the regulatory market also. That is why Sharon is a perfect fit for the regulatory CDMO business for us. Now from the regulated CDMO business, we are concentrating on the Sharon Dehradun block. From there we see to expand our regulatory business footprint. What is our plan for growth for this Sharon? It is the same. Let us add the plant and add the product. We keep on focusing on the international customers, and from existing customer, we try to increase the volume, increase the number of SKUs. Can I get to know the major therapies, Sharon? In Sharon we have the general tablet capsule, so the therapeutic category would be like anti-diabetic, anti-cardiac, NSAID, painkiller. So whole general line of product can be manufactured there. Okay. We are exporting into Europe, not in U.S., till now. Not in U.S. We are exporting to Europe and Canada, Australia, South Africa, other than U.S. market. Sir, my last one is that due to this BIOSECURE Act in U.S., how do you see about this outsourcing to India? Please come again. I'm not able to listen you. Sir, there is a BIOSECURE Act in U.S. market. We are not a U.S. focused, basically. Thereby, I'm not able to comment on this question. Fine. Sir, the last one is that, as you said that from last 3, 4 years, we were growing at 30% to 35%. What's your guidance for further, sir? Sir, if you see the last 12 years, we have always doubled our turnover in the three to four years mark. Sometimes it is three years, sometimes it was four years. Even in the year passed, if you see, the same growth rate we have maintained. With the help of Jammu plant, we are feeling that again, we will double our revenue and bottom line numbers to double in the next three years. Thank you, sir. Thank you very much. Thank you. Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question is from the line of Anand Padmanabhan from PGIM India Mutual Fund. Please go ahead. Thank you for taking my question. Apologies, sir, if you have already covered this point, I joined the call a bit late. On the Jammu plant, what is your guidance? You said that around INR 800-900 crores over the next two to three years, right? Yes. Okay. And this INR 800 crores, what would be the breakup between, say, domestic CDMO and international generics? Let's say, to mature the international business, we take little bit time, say two to three years. Okay. These numbers is majorly from the domestic CDMO. Domestic CDMO. Would there be some internal sales to your international generics? Yeah. That will be internal sales to our Univentis Medicare also. Part of that will go to the Univentis. But at a normal level, that is like a CDMO only. Okay. 800 crores, which it will include the external domestic CDMO sales and also internal sales to the domestic formulations and maybe even for foreign or international branded generics, in case there is some internal sales that you would have to do in terms of relocation of capacities, et cetera. Yes. But international sales generally start after, say, one to two years time, because we need to file the dossier to the various regulatory market or the rest of the world, and then the business starts. Okay. It's fair to assume that almost 70%-80% of these INR 800 crores would be in external sales on the CDMO side. Right. 100%. Thank you for answering my questions. Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question is from the line of Amit Dalvi from GA Financials. Please go ahead. Yeah. Thank you. Sir, maybe the first question I have on the CDMO pricing and how have things for last few, basically, Q1, Q2, how the pricing has moved for the CDMO? CDMO pricing, if you see from the API perspective, there is a cool down in the API price. Now we see that there is no further decrease or the data is getting normalized from this quarter, or there is no further decreasing from, say, last two quarters. There will be base normalization effect. From the next quarter or this quarter onward, we will see the growth in the turnover as well. The volume growth should start reflecting in our revenue growth numbers from next quarter. Perfect. Okay. Yeah. Perfect. And the second question I have is on the Schedule M. How things are changing on ground because of this? Because we have been hearing news on lot of plants taking closure notices from the government, especially in Himachal region. So what's your insight on the same, and how things will benefit going ahead to company like Innova? Thanks. Yeah. So from the Schedule M perspective, we see, sir, there is a massive change in the Schedule M. So that needs the capital investment as well. So Schedule M, there are two, three types of things. One is the capital investment, second is the compliance, documentary changes. The other is like practice-related issues. So we cannot say that it is just a documentary or a practice-based issue. There we require the financial investment as well. So we see it as a great opportunity in the CDMO space, not only for Innova, for all the companies. Those who will comply with the regulations will go ahead into the cloud and will attract the good business. So for those who will not adhere to the quality principles or will not comply will face the challenges. So as you know that domestic CDMO business is well fragmented business. So I think that it will help the industry to further consolidate towards the bigger CDMO players. Sir, so are we seeing any traction or any incremental inquiries from our clients because this Schedule M is coming in? Yes, sir, there is a continuous process that the inquiry come and few inquiries come because of the consolidation also. Right. The third question I have on the trade generic side, here accessing how has been our presence across India? Are we a region-centric of players in a trade generic or we are spread across India? What will be our strategy to grow our presence in the trade generic part? Okay. Trade generic, we started in 2016, and we have grown our trade generic business at a very healthy pace rate. Now we are covering almost pan India. We have the presence pan India, and we are focusing on, say, where we have the lesser sale or where we do not have a deep concentration, we are focusing on that to reach to all the interior and length and breadth of the country. So there is a geographical presence side. Other is the product side. We keep focused on launching the good product, and as per the market requirement, we keep focusing on enhancing our product basket as well. With the help of these tools or the combination of these tools, we anticipate that we will keep growing in our trade generic business as well. And the consequent is currently is like 17% in our total sales. As we double in the next, say, three years time, we see the sale percentage means our trade generic business should also grow at the same pace rate. Sure, sir. I will plan that. Thank you, sir. Thank you. Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question is from the line of Satish Borisa from SecM Investment. Please go ahead. Hello. Am I audible? Hello. Yes, sir. You are audible. Yeah. Please. Thanks for the opportunity, sir. My only question is on the Jammu plant. You mentioned we are looking for INR 800-900 crore of sales in next two, three to four years. If you can quantify what kind of revenue we are expecting in FY 2025? Sir, if you see that we are saying that by the Q2 end or maybe October, possibly, we will start the operation in Jammu facility. Anticipating the first quarter is a bit difficult. But let's say the next year, the revenue is set, the two, three working order is already placed, and we will be on the track to see the good trajectory in the next financial year. So maybe from next year, this plant can generate INR 200-300 crore kind of revenue, right? We are anticipating better than that, sir. Apart from this, excluding Jammu, our regular business will grow anywhere between 20%-25%. No, sir. As I already covered that in our Sethalef Colony or the original 2007 block, we have the capacity constraint, only the capacity is available in our Jammu facility. There we expect that early teen type growth. Okay. Not 20%-25%, but the early teen type growth due to the capacity. The capacity will be released from the Jammu. The same block is there. Let's say Sethalef Colony and three new projects will be there. Most of the growth will come from the Jammu facility, whereas we will maintain a healthy rate of growth in the core Purbi business. Okay. Just to understand better, sir, our blended growth this year will anywhere between 12%-15%, right? This year, it will be better than that, sir, because few data will be added from the Jammu also. Okay. And margins will remain at similar level. Yes, sir. Similar level. Okay. That's all from my side, sir. Thank you. Thank you. Thank you. The next question is from the line of Karan Shah from GC Holding. Please go ahead. Hi, sir. Thank you for the opportunity. Just wanted to check on one thing. Post the commissioning of Jammu facility, where do you expect the share of CDMO in the overall revenue mix to be? We expect that it will remain same because, like trade generic is holding 17% share. From Jammu also, the product will be sold to the Univentis Medical or trade route. Overall, maybe, say, international business, they may be less for a few time, say, one year or so. But overall, we expect the same consequent in our business. Okay, sir. Thank you. Yeah. Thank you. Thank you. The next question is from the line of Bijal Makai from Amit Jasani Financial Services. Please go ahead. Hi, sir. Congratulations on good set of numbers. I just wanted to know how much can we stretch our existing plants, not the Jammu one. How much can we stretch? What is the capacity utilization and the kind of value add or the top-line growth that can happen to the plant further. Hello? Hello. Yeah. As we already said, in our existing plant, in our original plant of Jammu that we set up in 2006, our fifth block that we set up in 2010, the capacity is already at an optimized level. Okay. There will be a very normal organic growth from there. In the general block, which we extended in 2017 and 2021, there is available capacity which is in order for investment. Whatever growth that we are looking in our existing manufacturing capabilities from the plant, that would be driven from our capacity available. Mostly will be driven from our capacity available in our general block only. Okay. Nothing significant in terms of volumes can come from Baddi now? Basically, we being a prominent, we basically are a manufacturing capability-driven business, and we see Jammu as just a part of addition to our overall manufacturing capability level. Okay. Yes, in overall scheme, the capability, the extension, the growth shall be driven by Jammu plant. Okay. Baddi will be only normal growth level in coming years. Right. When is the kickstart of the first block? Jammu? Of Jammu? Jammu, we are planning to start in September itself. September. That will be a commercial production or will that be trials? We have a separate foreign block where we will go through the tech transfer route, so it will be immediately commercialized from there. Okay, fine. That's all. Thanks a lot and best wishes, sir. Thank you. Thank you. The next question is from the line of Shubhdeep Aggarwal and he's with Messner. Please go ahead. Hello. Yes, please. I just wanted to understand what is your CapEx guidance for the next three years. I read in your note that you are going to set up a new R&D plant in Panchkula, Haryana. I just wanted to understand what additional CapEx do we have for the next three years after finalizing of the Jammu block. The R&D CapEx is already committed. We have already closed our building. Infrastructure is already created. Let's say INR 10 crores to INR 15 crores is the total expenditure that we are going to do this year on the R&D side. Jammu facility, most of the CapEx is already done. Apart from that, only the maintenance CapEx will come. Until and unless we plan for the next manufacturing facility, whenever that will be done, we will come and inform to all stakeholders what are the plans. Till then, the CapEx will be only 3%-4% of the gross block, that is the maintenance CapEx. That's all. Got it. Perfect. Thank you so much. Thank you. Thank you. Ladies and gentlemen, that was the last question for today. We have reached the end of the question and answer session. I would now like to hand the conference over to the management for closing comments. Thank you everyone for joining us in the earning call. We appreciate your time and showing interest in our company. In case of any queries, you can get in touch with us or SGA, our investor relation advisor. We look forward to meeting all of you over the next call. Thank you. Thank you very much. Thank you very much. Thank you. On behalf of JM Financial, that concludes this conference. Thank you for joining us. You may now disconnect your lines.