Q3 20/21

Jan 29, 2021

Conference call for Q3 and nine months of 2021. I hope and wish everyone and their family members and their colleagues are safe during this pandemic. During this pandemic, our manufacturing units, R and D center and Hartford office are functioning normally during this quarter. At LARAS, we are committed to protecting the health of our employees and their families. We continue to implement rigorous safety and hygiene measures across all functions without any complacency. I'm very thankful to our colleagues for rising to this challenge and ensuring business continuity successfully. Our Q3 revenues stood at INR $12.88 crores showcasing a robust growth of 76% year on year for the quarter and 71% for nine months of FY21 year on year. We are also glad to mention that our revenue growth was driven by robust demand for several key products and not driven by COVID-nineteen related stocking. EBITDA margin was robust at 34% despite withdrawal of export incentives by the government and high logistics costs during this crisis. To begin with, I would like to share the key updates on our growing formulation business. The formulation division achieved INR $4.30 crores sales in the quarter showcasing a growth of almost 50% year on year. During the nine months of FY 'twenty one, this division achieved a sale of $12.34 crores. The revenue contribution from formulation segment is about 36% for nine months as recognized to 28% in FY 'twenty. During the quarter, we got approved for a triple combination product containing tenofovir alafenamide. And we are in the process of obtaining inventory approvals and we expect to launch this product in the first half of next financial year. Apart from the LMS business, we have also seen growth in developed markets of North America and EU. To leverage our marketing front end in The U. S. Business, we commenced the marketing of in licensed products, products developed and manufactured by our business partners. Out of five in licensed products, two are launched, and we will launch the remaining three products during the quarter one FY 'twenty two. We had a total of nine final approvals and nine tentative approvals out of 26 ANDAs filed so far. In Canada, we have six product approvals, of which four were launched and we intend to launch the remaining two very soon. As far as the EU business is concerned, we have validated an additional two products as part of our contract manufacturing partnership. We expect a significant upside from these products from FX23 onwards. We also obtained approvals for five products in The EU region, of which we have launched two products and we'll be launching the others very shortly. We continue to invest in our FDF infrastructure. Our debottlenecking exercise of existing capacities is on course and this capacity will be available for commercial manufacturing by end of the Q4, although with a delay of few months. Our brownfield expansion project in FBF on the same site with similar capacities will be operational in a phased manner from August 2021 and will be fully operational by end of FY 'twenty two. On the R and D front, we continue to invest in our FDF business. Overall R and D expenditure across all divisions as a percentage of revenue stood at 4% for the nine months of FY 'twenty one. So far, we have filed 26 ANDAs in U. S, nine dossiers in Europe, 12 in Canada, eight with WHO, two dossiers in South Africa and two in India, while we have filed several products across to rest of the world. Out of the 26 ANDAs filed in U. S, we believe two are P4s and seven are up to file in P4s. And we would like to reiterate that approach our approach remains product specific rather than market specific. When coming to our generic API business, our anti viral API business recorded a very healthy growth of more than 160% for the quarter over quarter three FY 'twenty with basic shared gross sales. And in the first nine months of this financial year, we almost surpassed the total ARV sales of the entire financial year 'twenty. The growth led by higher volumes of all key first line APIs. Second line ARG APIs continue to CLG sales in Q3 FY 'twenty one. Due to the demand increases from third party API sales, we are expanding capacities to key APIs in the coming twelve months time. We expect to maintain sales at this level in the coming quarters. When it comes to oncology APIs, segment recorded growth of 56% quarter over quarter. Onco sales declined by 25% from Q2 to Q3 due to higher uptake of few APIs based on approvals by few customers. With outlook, I would also like to mention that we have one of the largest high potency capacities in the country and have plans to expand high potency API manufacturing capabilities in Unit 4 as well. We expect reasonable growth in Onco business in the coming quarters as well. In other APIs, our sales remained flat from Q3 FY 'twenty to Q3 FY 'twenty one. For nine months, we achieved a sales growth of over 25%. The sluggishness in the segment in Q3 was due to changes in deliveries from some customers. We have initiated discussions with one of our three generic partners for contract management opportunities for several APIs, So we expect to build a dedicated block to accommodate these generic API contract manufacturing. But we are also creating a lot of capacity for non ARV APIs. When it comes to synthesis business, we started a growth of 60% from Q3 FY 'twenty to Q3 FY 'twenty one. In the nine months, we have achieved INR 3.3 crores sales. As you are aware, we have incorporated another step down only one subsidiary, Larous Ingredients Private Limited during the Q3 FY 'twenty As we are expanding the manufacturing infrastructure for this division, this new subsidiary will focus on few core areas under consideration. Construction activity initiated at the proposed dedicated synthesis R and D at Genome Valley close to our current R and D center. A new manufacturing site for this division will also be a greenfield project at Wyzagh, which will cater to the manufacturing needs of the division over the next two, four to five years. We are in the process of acquiring land for this division and this site will have capabilities to handle steroids and hormones, high protein molecules apart from large volume commercial products. We are also happy to share that we acquired majority in Richkore and the company will be renamed as LarusBio. LarusBio is on course to commission large scale fermentation capability during the quarter for FY 'twenty one, and we are confident of achieving growth as outlined earlier during the acquisition. We're also acquiring additional land for further expanding manufacturing capacities and capabilities for Laraspire. With that, I would like to hand it over to Ravi to share financial highlights. Thank you, Doctor. Setya, and very warm welcome, everyone, on our Q3 and nine months FY 'twenty one earnings call. Total income from operations for the quarter was INR 88 crores, again, as INR $7.30 crores showing in 76% year on year growth. INR 3,000 INR 400 crores against $19.93 crores for nine months, which growth is 71%. With better product mix, gross margin improved from 31% to 55% on a quarter on quarter basis. Our EBITDA is 34%. Diluted EPS per quarter is at 2.1%, not an annualized basis. More than 250% growth over quarter three of 'twenty. The previous for nine months is INR 2.8 crores, not annualized. Our ROCE improved 40% on an annualized basis due to operational leverage. On the CapEx spend, we invested around $2.33 crores during nine months of current. We have incorporated fully owned subsidiary for our largest security named LoRa Solutions. We can accept in a special project in. To strengthen our position in the past, are invested in micro integration and one of our ARV products and which is operational in January 21. We acquired a line for the upgrade in Hyderabad, wherein of course, requiring an additional site for our API and. Based on the performance of the company, the board of directors is a share of rupees 2. This value is around 40%. And one on your touch tone telephone. If you wish to remove yourself from the question queue, you may press and 2. Participants are requesting 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 Amit from Old Bridge Capital. Please go ahead. Hello, sir. Good morning, and Farik, congratulations for such strong results. I mean, it was a third quarter in a row based on this performance. Three questions from my side. One, sir, as we just wanted to get your bits on how is the TLE through the TLD transition happening in the ARB market? How are you hedging your business against this transition? That's one. The second is we look at your reality business revenues, the API business. And even in Q2, we saw a significant gain in market share, and we see a significant gain in Q3 as well. The sense that we got in Q2 was because of you being a Tier one supplier, you were just customers preferred you over the others. So is that the same reason which is driving your market share gain or there's more to it? And the third, if you could give us a sense on the geographical split of your nine month FY 'twenty one FBF revenue between LMIC and non LMIC? Thank you. Shift to in therapy from power engine to dolcegrave, we did very well, in fact, through our benefit. While we continue to increase, not only return, increase our market share in power range and its intermediates. We continue to sell significant volumes of Goltogravir as part of third party API. And also majority of our formulation sales are coming from TLD and some sales are coming from TLD. As you are aware, there are only three approvals for TLD, whereas there are nine approvals for TLD. So, we continue to have advantage in TLE, while we capture more market share. And we continue to retain the market share what we have achieved in TLD. And when it comes to the revenue split from LMIC versus North America and EU, as we explained earlier, the cities were threefour and onefour, about onefour of revenue came from advanced markets and threefour came from LMIC. Okay. And a question on ARV APIs? ARV APIs, we are adding more capacities to meet our demand. Surprisingly, our order book for ARV APIs was much bigger than at the beginning of Q2 to beginning of Q4. So we see lot of uptick in the demand for APIs. That could be because of our scale, because of our quality complaints and such. We are getting lot of traction and high demand for our key first line APIs. So we expect to if you look at our Q3, we have done over INR568 crore ARV API sale. We are confident to maintain that in the coming quarters. You. Next question is from the line of Sudarshik Hermanabad from Sundaram Mutual Fund. Please go ahead. Yes. Thank you for taking the question and Sundaram on the exact number. Sir, my question is to understand the correlation between mix and gross margin. I mean, despite of semi highest and despite of so if you look at some of the G1s, G1s, higher this quarter, Gross margin has kind of improved. I mean, it does I mean, does that mean the, you know, the frontline combination in terms of ARV has higher margin? I'm just able to kind of reconcile this, you know, mix versus gross margin, sir. Our gross margin was a little less in Q3 because of withdrawal of export incentives and also higher logistics cost due to the COVID crisis. But we are confident that we'll be able to maintain the gross margin levels. It also clearly indicates the quality of revenue we are achieving. We are not compromising on the quality of business for growth in top line. And also our operational leverage by increasing asset utilization is clearly visible by showcasing a consistent increase in our EBITDA margins as well. I think in this quarter, we have higher API versus solutions and synthesis. That's what I'm trying to understand. We also had some high gross margin APIs. We supplied significant volumes of APIs, including AirView APIs for launch in Europe and U. S. So that also contributed to higher margins in API division. And we have enough on contract and visibility in terms of volume of things that as you mentioned that this INR $3.60 crores, $3.70 crores is the same for 'nineteen? We we do hope so. Yeah. One final question is on the, you know, finish the shift side. I think with, you know, the customer combination for us, you know, almost, you know, finish the shift. I mean, do we have the in place capitalize on the kind of launch? Currently, we are using our capacities at the optimum level and our debottlenecking exercise will also be finished during Q4. And new capacities will be available from August onwards. So we are gearing up to meet higher demand. See, as I mentioned, we are looking at healthy top line, not just top line. So we were cautious to get market share, while we maintain our third party API sales. So if you look at our ARV, we have done more third part more API sale to third parties in ARVs rather than our formulation division. So we would like to maintain that strategy to cannibalize our business by going aggressively into formulations as well. Thanks a lot. I'll jump in the queue. Thank you. Thank you. The next question is from the line of Nitish Rathu from Rupaulin India Mutual Fund. Please go ahead. Yes. Hi, sir. Good morning. Can you help us understand Assuverance versus Dolcegravir? Is one either of the products a high volume, low value versus or low volume, high value kind of PPA? So far range and its intermediates, continue to have a leadership position where we are making about 700, 800 of our R and D intermediate in the year. Whereas DOLTAGRAPHY, if you look at the FARRHY is 600, four hundred milligrams versus fifty milligrams of dolutegravir. So, the dosage is significantly low, but pricing is high. If you look at the franchisee of Favourangin plus dolutegravir in FY 'twenty and FY 'twenty one, we have done more sales in the franchisee than the last year. Okay. So you said four sixty milligram versus forty milligram. So on a optimum at a market level, the API consumption comes down very dramatically on a tonnage. And sir, on the in the API market for ARV, even though there would be many peers who would have got approval from the global vendor in the global fund, how many peers are active in the supply APIs? I think there are not many APIs which are prequalified by WHO. But when it comes to formulations, there are about eight approvals right now for Zoltakovir based combinations. And we believe we have reasonable market share in the formulations and largest market share in the APIs in Zoltakovir. So is there like in terms of formulations assuming WHO, eight players, are all eight to 10 players active in the market? There are players who have withdrawn and they may come in coming years or so? No one withdraw from the market, but the market share varies significantly from player to player. There is eight player market doesn't mean it is 12.5% everyone enjoys. We are probably number three in the market share. I'll not give you the percentage wise. We are number three when it comes to the overall market share in the organization. And in the API, you would be number one? Yes. So given you said it's a low volume API, is there any risk of competition coming in given the strong profit or strong revenues we are making in the ARV API in two, three years on a medium term basis? If you evaluate the history, in the last five years, there is no new API payment to ARV. And if competition comes, we will get it. So we are not worried about competition. So we have largest capacities installed, and we have one of the last step is to process. And we have regulatory approvals in place by WHO, by FDA. So we believe we will maintain our leadership position. Yes. Sir, one last question. In last year, you mentioned on the ground level, the dispensing for the ERV was increased from one month to three months because of the COVID pandemic. Is that a change or is that status quo anything over there? Now things are stabilizing most of the geographies? Others for ERVs are in the multi month dispensing only. So same question was asked by someone, is there any restocking happened because of the sales increase in Q1. Assuming Q1 stocking, Q2 stocking, so people will not stock for a year. So people move from one month dispensing to three month dispensing. And majority of our formulations, not only as most of the people are supplying in multi month dispensing packs. So that became a quite normal nowadays for most of the ARV products. So we don't see any risk of that reversing in next six months is what my question was? Even it reverse, the people will buy three packets instead of one packet. Okay. Good morning, Sachin, Patti, Chubi. Three questions. First question is, if you could give a bit of a perspective on the HIV market. You would reach a turnover of about $350,000,000 in HIV, API plus formulation approximately. How big is the opportunity you see over the medium term? Can you solve this over three to four, five years, the largest player is $1,000,000,000 player? So what is the potential market for LORES to be its lowest cost production large capacities? I think doubling 2,000. The reason is the number of patients who are eligible for the treatment is not increasing significantly. So there are more number of people being added into the treatment that is six percent, seven percent of patient additions we are seeing based on the data. So the growth could be five six percent in half year. Do believe that increase will be offset by price decline bodybuildup. So our growth in ARV APIs primarily come from demand moving from weak players to strong players. Understood. Understood. And as the HIV market saturates for LORIS, which are the other therapies where you could have a similar dominant position over the next three to five years? Will it be diabetes? Is it offer that kind of an opportunity or which therapies could offer or it's going to be a combination of a lot of therapies? There are two therapies which we have very strong focus and also business pipeline. The one is diabetes. The second one is cardiovascular. And we have a very good basket of products in diabetes right now. And we are building our strong basket in cardiovascular products as well. So these two will drive our growth in the coming years. See, if you look at the evolution from 80% to ARV APIs, we in the five years, we moved to 38% of ARV API. Similarly, our revenue dependency on ARV formulations currently is very high. But in the next five years, we will also diversify our revenues coming from non ARV formulations significantly and the dependence on ARV will come down significantly. So because there are no new formulations to be developed in ARVs. We are almost done with most of the developments. So development focus is shifting from ARV to non ARV. And also, we are adding very large capacity in Wajjag and we have taken land for formulation expansion in Hyderabad as well. So if you want to look at the where we will be in, say, four years down the line, I'm sure we'll be discussing on non ARV in five years from now. If you look at the call one year, one point five years back, half of the time people are asking questions on FR range. Now nobody asks questions on FR range. Two years from now, people will not ask questions on the ARV APIs. And maybe another two years from then people will not ask about ARB formulations. People may talk about what is we are doing in our LARS Bio, what growth we have in LARS Bio, what other therapy areas we will be focusing, what kind of delivery dosage forms we are doing. So company is in the transformation phase. So we need time and we are very confident to expand our portfolio beyond just AIV. Sir, next question was on Laurus Bio. I know it's just been a month, one point five since the acquisition has been done. Just three to five year, how do you see it? Lots of happening, whether it is therapies, whether it is food, nutraceuticals, what's your vision? How should we think about LARS Bio over three to five years? See, LARS Bio will be a CDMO for recombinant proteins, whether it could be food or for therapeutics. Currently, the expansion going on at Larus Bio is to meet customer demand for recombinant protein based foods. And we are looking at acquiring land, as I mentioned in my opening remarks, to expand that recombinant protein manufacturing capabilities, not only for food, but also for therapeutic. We also identifying lot of areas where the synergies could be between our chemistry and fermentation capabilities of bio. So the synergies are also looking very attractive. So a lot will happen. And we will give you more details as and when we expand into new areas. That is very exciting for us. Last question if I may is on the Synthesis business, the first pillar for LORIS. In the new emerging scenario where small molecules are sort of not that many would make them out of the pipeline of the big pharma pipeline, how do you see the Synthesis business? What is the opportunity you see over the next, year, again, mid year to long term? In our CDMO business, we have evolved very significantly in the last decade. In 2010, we need to explain our company first to fifteen minutes in the meeting. Now we don't need to explain our capabilities and we need not explain about our scale. We need not explain our sustainability. So we are recognized as a strong player in CDMO for high protein molecules and in very large volume molecules. So people look at us on the two extremes, like in our API also, we are doing high potent oncology molecules and we are doing very large volume diabetic and ARV molecules. Our CDMO efforts are also calibrating in the same time. People are using that as for high protein molecules, which we have several molecules in pipeline. And we're also doing several tens of tons of opportunity commercial molecules. So although the number of small molecules in the development by big pharma is constant, I don't want to say going down constant and we have great opportunities there. Okay. Thank you so much. Thank you. Ladies and gentlemen, in order to ensure that management is able to address questions from all participants, request that you please limit your questions to two per participant. If you have a follow-up question, you may rejoin the queue. The next question is from the line of Tushar Manodhani from Motilal Uswal Financial Services. Congrats on a good set of numbers. Just taking forward from the previous participants. So maybe two years down the line, you would be talking more about non ERVs and Lotus Bio. Will we be talking about ANDAs as well? Yes, absolutely. We will be talking about ANDAs in diabetes, handouts in cardiovascular and P4 launches and maybe new dosage forms, not only currently, we are doing only solid orders, maybe situation will change, we may enter into other delivery forms as well. So a lot of things are at the drawing board stage. And we are very comfortable to derisk our dependence in ARVs, while without compromising our growth in ARVs. If you look at 80% ARV APIs companies to 38% ARV companies, But our ARV APIs sales went up by INR500 crores from when we were 80% dependent to when we were 38% dependent. So you could understand how much of diversification is happening in the organization. Sure, sir. Just on the large buyer side with the acquisition of additional line, how much do we plan to invest over next few years in this venture? It's not that significant investment. We do believe our subsidiary, which Lars Bio, will be able to generate its own cash to invest or raise its own debt to invest. So because their margins are very attractive, sustainable. So we don't see any challenges to invest there. We do believe we are capable of raising money. And if necessary, we can assist them. And just secondly, on the API side, particularly on the API side, what is the capacity utilization? And given that this it that this downstream expansion is getting a bit delayed because of COVID that will be operational from 01/2001? Only formulation expansion was delayed by a month during the crisis, but our APA expansions are on track. Earlier, we used to say we are one of the top five APA company with respect to react volume. Now we can say we are the top four, number four with respect to react volume. Currently, we have 4,500,000 liters react volume and we are adding 30,000,000 liters in the next execution phase. So that will take us to 5,500,000 liters react volume. We are significant addition, almost 30% what we have, we're adding in the next twelve months. Interesting. And sir, just lastly on so overall CapEx guidance, we're repeating the CapEx guidance for next year. We as we mentioned in the last conference call, we envisaged about INR 1,200 crore investment over the next several months. We believe that is enough for our growth. We don't see any additional CapEx required to meet our growth. The next question is from the line of Prash Mehta from Iham Holdings. Please go ahead. Good afternoon, good numbers and thanks for taking my question. I wanted to ask what is the percentage of revenue this quarter, which is non ARV? We are talking about all divisions put together. Yes, all put together. Non ARV, all divisions put together. It's about 40% more right now, it's 40%. Okay, 40%. Yes, more yes, maybe closer to 45%, I would say. 45%, okay. And another question I wanted to ask is about capital allocation going forward after the Rishco acquisition. So we can get a sense of the split between how much CapEx might be thinking of allocating between Rishco versus the Rishco or ARV business? The capital allocation, what number we just gave INR 1,200 crores is not inclusive of CapEx, which is to LARS Bio. I think that is not going to be very significant and they will be able to raise or invest from their own cash. Okay. Thank you so much. The next question is from the line of Sameer Shah from ValueQuest. Congrats on a good set of numbers. Sir, question is on the opening remarks, you said that this is an upgrade from some EU partnership from FY 'twenty three. So can you just elaborate on that? We have done validations for two products in the diabetic space, and we expect significant volume uptake in FY 'twenty three and also as we wanted to expand and diversify into non ARV, that is the year where we expect significant diversification happens out of non ARV. Right. Understood. And just secondly, on the customer synthesis business, if you can give some idea of the funnel or in the last one call, mentioned it will be the business will be on its own from next year onwards. Are there any significant progress under discussion or if you could give some idea of fund? We have a lot of opportunities there. We are not giving any guidance. We do expect to create dedicated R and D as I mentioned, we are creating dedicated sites to sites for the division. They will grow from FY '23 onwards significantly And we are very excited about that growth in the division. Okay. Thank you. I'll get that. The next question is from the line of Sivan Patna from Credit Suisse Advisors. I have two questions. One is about our exclusive opportunity. If you can explain which specific area through the and what is the timeline for for those launches? In in which division you are asking that question? The first two file opportunity is your formulation, the Farahqa. First two file, okay. Out of seven first two files, have the earliest opportunities will be in 2025. Okay. Sure. Thank you, sir. Thank you. The next question is from the line of Vishal Bhoda from M. K. Business. Please go ahead. Yes. Thank you so much for your question, Sri. And congratulations to the management for delivering a very strong set of numbers again. So just quickly to start with taking part from G1's question and linking back to your earlier answers. Essentially, 20 is when we see the first of FTS. And 02/2023, we see significant diversification in the business on the non ARD side as well as presumably a lot of this diversification will be from regulated markets. So should we look at this, is that we have a very clear growth visibility for the next two, three years on even before the FTS start kicking in? Yes. See, non the ARV growth coming from austained generic launches, which are not P4 related and also launching very large volume, fully integrated formulations, which some of them are filed, some of them are under development. Our growth in formulation division is not dependent on launching our first profile products. Got it, sir. And we had plans for vegetables, I think it was highlighted in one of the earlier calls. Any updates on that front? We'll update you probably in the next couple of quarters as in when we have a complete time lines and ideas. Right. Sir, on the capacity expansion side, so we did, you know, almost revenue this quarter. And is it fair to assume that, you know, this can be annualized to the current capacity to support this in an annualized basis. And so the equivalent input expansion that you see, none of it is in the numbers right now. So that is a further growth possibility, sir? If are only satisfied with annualizing INR 1,300 crores in Q4 for next year, please go ahead. So you are not that aggressive then. No, no, sir. I am not trying to reveal my hand here. I'm just trying to understand that, first, a, it is fair to say that INR $13.84 crores is the bare minimum, right? And then I would like to understand, you know, how much of the CapEx is already done and exactly from this point forward, how much CapEx will need to be done, which will start you know, which will fuel this work for next two years. And if you can help segregate that by division. We don't want to reveal division wise CapEx, but we can tell you, beginning this quarter, every quarter we have capacity additions, either in the form of backward integration of intermediates, additional API capacities for existing products, additional capacity for new products, formulation debottlenecking or lines doing commercialization for formulation. So coming at a regular pace. So these are not coming in bunch. Every quarter, we have something coming handy for our growth. Just then so in Q2, we mentioned that we will have such a constraint that will obviously get some of the profitability in Q3. And Q4, we should see the full effect of new capacity coming in. Now that we've said that there's a sensitivity on the formulation side, we should expect that maybe Q1 will probably see the ramp up far better than Q4? We do expect Q4 also will be good. So Yes. Okay. And just one last one, if I may squeeze in. If you can help understand the long term vision for your nutraceuticals, social services business, Is there a potential to see that part of the business into a much larger, more meaningful segment for us? Our nutraceuticals, cosmaceuticals business was added into our CDMO business because we are not in doing commodity products. We are doing one product to one customer So kind of we are doing a lot of business with very big companies. We don't want to name those because of confidentiality. We are working with who's and who's in nutraceuticals and cosmaceuticals. And sir, just a clarification on the topic you mentioned. So this 1,200 projects does not include the Diskor acquisition and possibly anything on the trial side. Is this a resolution, Domei? Yes. Okay. Great. Thank you so much, sir. I'll join back, Dmitry. Thank you. Thank you. The next question is from the line of the agent Privedi from Ambiti. Please go ahead. Line of Sangeeta Pershottam from Parmito. This is Andrey, Sangeeta Pershottam. Congratulations on the benefit of numbers, sir. I just had one or two quick questions. One is that decline. Should we add anything into this? Or is this just a final variation? I think the slight decline in FDF revenues from Q2 to Q3 is only quarter execution, nothing significant there. And when it comes to EBITDA margins, as we mentioned, we can't give you a specific number, but we are keeping mentioning, we are confident to maintain 30 and or more EBITDA despite our continued growth in our top line. Sir, this is Sangeeta for Shotan. I had a follow-up question. When we are looking at the composition of business, FCF, it's been sort of flattish, like you mentioned, in instances. And a bulk of the growth has really come from the antiviral side, even within the generic API duration we've seen on GoFull and other APIs. Now what is outlook on Onco and API Genesis and Generics? These are the divisions which are really going to lead to a mix for you going forward. The Onco APIs will have revenues around 300 because we are not adding the oncology sales related to our CDMO into this. So that segment, high potent manufacturing in CDMO is great. We're not adding that revenue to this. This is a generic oncology APIs. And in other APIs, because significant revenue in other APIs is coming from contract manufacturing, so the sales will be bulky. So you might have seen in Q1, we have done INR135 crores, in Q3, we have done INR50 crores. But in Q4, the sales will be bigger than Q3. So it is a timing of deliveries in other API. The products what we're validating in other APIs, we'll see commercial sale in FY 'twenty two and there are good number of APIs in commercial supplies in FY 'twenty three. But growth in other APIs can also have very good attractive rate right now. Right. Okay. And on the generic, there are some competitors don't see any concerns in terms of growth. That is something where we expect numbers picking up forward? In synthesis, yes. Synthesis because of some delivery commitments to be done in Q4. Q4 was bulky last year, and we do expect Q4 will bulky this year as well in our services division. But if you look at our last three quarters, we have done 100 crores in Q1, 116 crores in Q2, 127 in Q3. It is growing. Yes. And we are very happy with that growth. I'm sorry to interrupt you, Mr. Kulshuta. Good morning. Can you hear me? Am I audible, sir? Yes, Okay. Sir. You Congratulations on a very good set of numbers. Can you give us an overview on the pricing scenario for tenders as well as the market. Seeing a pressure on on the I think we immediately answered this question as we mentioned. Desperate of our growth in top line, we're able to maintain EBITDA margins. That clearly gives us indication that quality of business is very good, and we are not compromising profitability for just top line growth. So we are comfortable right now, and we expect we'll be able to manage the slight decline in prices by effective cost to control measures by the way of procurement or operations improvement. We do expect the numbers will be good. Sir, I understand, but the margin can be maintained also because of change of product mix. So my specific question is that for the same product quarter on quarter on year, can you give us some idea as to what the price declines have been up in the range of 3% to 5%, the range of 8% to 10%? So can you give us an idea that what is the kind of pricing impact which may be there on the top line, which has, of course, been covered by better cost management and improving on the product mix? We can't give you those product specific details. I'm not asking for product specific. My question is around the for the same type of products, molecules, on an average basis, what would be the price decline? You're talking product wise, overall for the company on an aggregate basis. Something to give us an idea as to what you're dealing with in terms of price erosions. See, our sales in U. S. And Europe in formulations is a quarter of our formulation sales. And we are not seeing any price decline significantly there. And when it comes to the LMS, ARV segment, because of these tenders are not weekly tender or monthly tender, pricing are reasonably stable for a period of few quarters. So there is no pricing is declined for every tender. So I hope I answered your question. Okay, sir. Thank you very much and all the best. Thank you. The next question is from the line of Ranveer Singh from Suneebi Securities. Please go ahead. Thanks for taking my question. Sir, can you give us the total of business losses between ARB and non ARB? As I mentioned, it is 75 and 25. So this is for advanced countries and LMIC. Yes, yes. LMIC sales are predominantly ARVs and then Europe and North America are non ARVs. Clearly, had rollouts in U. S. As well, right? No, that's not very significant sales, yes. Okay. And this particular question just in general, so the selling price of Delhi, dollars 75, some people were selling it at a discount. So this discount has increasingly been higher. People are the price is much, much lower than what the selling price is versus last year? How is the trend there? In general for industry for all players, I wanted to understand. You have to look at how much of backward integration people are doing. If somebody buys APIs and parts per intenders, somebody buys information make APIs and parts per intenders, somebody makes starting materials and make information and APIs and parts per intenders. So the profitability margins depends on where they start. So for integrated players like us, we have the advantage of maintaining the profitability versus people are non integrated by API into formulation. Some people even don't do formulation. Some people outsource formulation manufacturing by buying APIs and giving it to somebody else for formulations. For those companies, the profits will be even less. So you have looked at how integrated the offering in ARV is more important to maintain profitability just to not the top line. Okay. Okay. And just a clarity, Rishkore revenue is built in this quarter, any amount or it's not at all? No. No revenue or profitability included in Q3. Probably we'll do it from Q4 onwards. Okay. Okay. Okay. That's my side. Thanks, sir. Thank you. The next question is from the line of Deep Gisiari from PCS Securities. Please go ahead. Maybe I'll answer your long acting injectables business. We are in the AirView business since after decades and we are watching the developments very carefully. And if there is a disruption, we want to be part of the disruption as and follow it. As you could see, the transition from the power of Zoltakrivir, we benefit out of that disruption. And even if canofovir will move to another low dose tenofovir alafenamide, we have approvals in place. And we have another combination products under development, which we are filing probably next week. And if there is a long acting injectable, we'll enter market. When and how will be depending on the WHO guidelines, which are not yet released. And even if it is as part of the treatment guidelines, it should be not before 2025. And we have the APS developed already. And depending on the guidelines, we will develop formulations and if there is a disruption because of this, I'm sure we'll be part of that. So you can rest assured on that. Your first question was not very audible. So can you repeat? Yes. You mentioned that We are not giving specific growth, but we will we are comfortable to say we will continue to grow in API business, not only FY 'twenty one but also in FY 'twenty two. Okay. And the at this point, what is the volume share on? You said the revenue comes from developed markets. So what would be the share in volume terms? Volume term, I can't give you those details. Yes. Do you see this 25% moving Please write to us, and we're happy to share you the details. Yes. And the 25%, how will you see it moving over the long term? So we will increase that share of revenue coming from Europe and North America and what we have today significantly because of products launch planned, which are non ARV. So that revenue share will go up. Ladies and gentlemen, this will be the last question, which is from the line of Sharuleta Khaidani from Dalal and Puna. Yes. Congrats on the good set of numbers. If you could give give by product the traction in ARB API? If you the majority growth in ARB sales APIs came from our three core products, Sanofi, Lamywood, FR engine, Voltage and Vault Of all three products, the sales were increasing significantly. Q4, yes. Okay. And second question pertains to the Europe partnership. Have you filed for marketing organization? It's a very interesting question. Partner had marketing operations. We are becoming their contract manufacturer as an initial site. So the approvals will be much easier. So our growth in those products in FY 'twenty three has nothing to do with approvals. So our facility was approved by European authorities and products are approved by authorities and we are becoming a contract manufacturer to them where we make API and also formulations for them. Okay. Can you name the partner? No. No. Okay. Thank you. All the best. Thank you. Thank you. Ladies and gentlemen, till the time constraints, that was the last question for today. I would now like to hand the conference over to Mr. Sathya for closing comments. Thank you, everyone, for your very valuable questions. And we always learn a lot from very interesting questions from the community. Thank you, and take care. Thank you.