Ladies and gentlemen, good day and welcome to the Marksans Pharma Q1 FY26 earnings conference call hosted by DAM Capital Advisors Limited. 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 your help later by pressing star, then zero on your telephone. Please note this conference has been recorded. I now hand the conference over to Mr. Nitin Agarwal from DAM Capital Advisors Limited. Thank you, and over to you, sir.
Hi, thank you. Good afternoon, everyone, and a very warm welcome to Marksans Pharma Q1 FY26 earnings call hosted by DAM Capital Advisors Limited. On the call today, we have representing Marksans Pharma Management, Mr. Mark Saldanha, Founder, Chairman, and Managing Director, and Mr. Jitendra Sharma, Chief Financial Officer. I hope to hand over the call to the management teams who need their opening comments, and we'll open the floor for questions. Please go ahead, Mark.
Thank you, Nitin. Welcome, everyone, and thank you for joining us for a Q1 FY26 earnings conference call. We sincerely appreciate your interest and continued support for the company. Reflecting on Q1 FY26, the quarter was seasonally soft, driven primarily by seasonal contraction in demand across our key markets in the U.S. and UK. In the UK specifically, we experienced high single-digit price erosion in a few products. We responded proactively and launched four high-margin liquid products in the UK. These launches are a part of our conscious effort to strengthen our portfolio and insulate us better for pricing factor. We are already witnessing early signs of demand recovery in Q2. We believe the momentum will strengthen as the year progresses. Our profitability was impacted by a few non-recurring factors, including integration-related expenses, a one-time provision in the emerging market derivatives, and foreign exchange volatility.
These are transitional in nature and do not deprive anything from the fundamental trajectory of our business. Strategically, we escalated shipments to the U.S. ahead of the anticipated tariff implications, hoping that these would soften potential disruptions and secure supply continuity for our customers. This front-loading impact impacted the working shutdown cycle, which stood at 159 days for the quarter. We are pleased to report that the new facility in Goa is structurally near ready. We are now focused on enhancing operational efficiencies and scaling capacity to support multi-dosage manufacturing forms of tablets, capsules, liquids, creams, ointments, and more. On the GST side, we have received an EIA from the U.S. FDA for the inspection conducted at our subsidiary DAM Capital Holdings. We also continue to make good progress on our product pipeline. During the quarter, we have received three regulatory approvals from the U.S. FDA and the UK MHRA and successfully launched four high-margin products in the UK.
These are all in line with our strategy of building a more diversified and margin-equated portfolio. Our strategy focused remains consistent to emerge as a trusted, reliable partner in the global consumer healthcare space. This is being driven through our strategic eight pillars of OTC expansion, strengthening our product pipeline, capacity augmentation, strategic front-end accuracy, and delivering sustainable and responsible growth. Looking ahead, we remain steadfast in our commitment to deliver a superior long-term value to all our stakeholders. Driven by strong operational execution, a robust product pipeline, and an enhanced capacity offered by a new facility in Goa, we are confident in our ability to navigate any challenges that may arise in the coming quarters through disciplined execution and strategic agility. With this, I'd like to turn it over to Jitendra for an update on the financials.
Thank you, sir. In Q1 of FY26, our operating revenue stood at INR 626.2 crore and increased by 5% year-on-year compared to INR 590.6 crore in the same quarter last year. Revenue from the US and North America market stood at INR 327.6 crore and increased by 30.6% on a year-on-year basis, driven mainly by growth from new product launches, clean digestive team management, and launch. UK and EU formulation recorded revenue of INR 203.8 crore. Australia and New Zealand market recorded revenue of INR 57 crore. The rest of the world revenue grew to INR 31.6 crore. Gross profit was at INR 358.2 crore, up 8.9% year-on-year. Gross margin expanded by 296 basis points from 55.7%- 57.8% in Q1 of FY26. Gross margin improved due to liquidation of high-cost inventories and benefits from softening input costs. We recorded EBITDA of INR 100.1 crore in Q1 of FY26.
EBITDA margin for the quarter stood at 16.1%, a decrease of 560 basis points from last year. This decline is due to an increase in employee expenses from the additional equipment of the new facility, along with one-time expected credit loss revision for the emerging market revision of INR 10.48 crore. Additionally, softer demand during the quarter resulted in lower than expected operating leverage. Profit after tax was at INR 58.2 crore, a decrease of 34.7% year-on-year. The decline in net profit was due to a decline in tax and a mark-to-market forex loss of INR 6.2 crore. EPS for the quarter was INR 1.3. In Q1 FY26, the cash from operation came in at INR 48.7 crore. The CapEx during the period was INR 37.8 crore. We spent INR 12.1 crore in R&D in Q1, which amounts to 2% of the consolidated revenue.
We continue to remain debt-free, and the cash balance stood at INR 711 crore as of 30th June 2025. With this, I would like to open the floor for question and answer. 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 your 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 comes from the line of Ahmed Madha with Unifi Capital. Please go ahead.
Yeah, thanks for the opportunity. My first question is on the UK business. Can you explain a little better in detail in terms of what led to 20% degrowth year-on-year apart from the points you mentioned? If you will explain it in a little elaborate manner, it will help. That's the first question. Second question, in terms of gross margins improvement, can you explain a little better what has led to the gross margin improvement and how do we see on an annual basis in terms of gross margin trajectory? Thirdly, on the FEMA facility, can you spell out the number of capacity utilizations for Q1 compared to what it was in Q4? How do you see the ramp-up of capacity?
Hi, Ahmed. Thank you. Addressing the UK concerns, basically, unlike historic numbers of UK for the past two, three years, obviously, the UK numbers were subdued on two counts. One was seasonality. The first quarter season is normally always the weakest compared to the rest of the year. The second is the price erosion that we have witnessed, which has been a bit abnormal due to possibly various circumstances. One, again, having a fascinating impact, which is still down from the tariff situation in the U.S., where you know uncertainty of tariff has basically slowed down demand in the U.S., thereby companies having a relook and refocus into different geographies for getting their revenues. We have witnessed a heavy pricing erosion happening in the UK and basically pricing being drawn from probably the top 20 Indian companies of the year to generate revenue and sales.
Unlike the U.S., in the UK, our portfolio is 60% OTC and 40% RX. As you always know, the RX is highly volatile in terms of demand and supply. Presently, there is oversupply and less demand, which factors in from the global scenario exempted from the tariff situations. We are seeing price erosion happening, which was abnormal, which basically we've never seen at this level. This, coupled with the seasonality factor being the summer season and being quite warm, obviously, this had both coupled into the results that we are seeing today. That said, the second quarter will be better than the first quarter, and the third quarter will be better than the second quarter, and so on. We do plan to basically, we are optimistic on displaying better numbers in the coming quarters.
The first quarter was below expectation from the UK, and that is, I think, pretty much out of anyone's control right now. The gross margin, sorry, the total facility that we spoke of, the total facility we are now trending at very close to INR 500 crore. I think in Q1, we were trending more towards INR 400 crore. There has been a better utilization from the total facility in Q1 compared to Q4. The gross margin increase is, again, the lowering of raw material costs. Initially, we were holding higher material inventory costs, which once depleted, the lower costs came into play, resulting in a better gross margin onto the product portfolio as a result.
Got it. I have two follow-up questions. Based on pricing pressure, are you suggesting a high competition intensity in the UK business? Secondly, is it that we are sitting with some inventory in the UK warehouse in our UK subs?
We always sit within [audio distortion] f rom a competition point of view, no, I don't see more competitors coming in, but I do see a lot of desperate selling happening. I believe this could be, like I mentioned, a taxation impact where companies are disordered to refocus their attention into different geographies due to the uncertainties of the global tariffs that are going on. In that situation, since the US was not yielding that result, companies tended to offload or get revenue in other markets, which resulted in any price erosion happening out there.
Got it. From that perspective, for a U.S. business, I think we were mentioning around $200 million order book. How is that order book shaping up? Are there any changing timeline of execution of the order book which we had mentioned earlier?
No. Our order book stands at $220 million today. Out of that, maybe $45- $50 million of that, the execution will start in the month of October, November, December, based on the artworks and the approvals and everything of that stuff. Obviously, a substantial amount of $135 million will not yield up to a full year of revenue arising in the year. That said and done, U.S. will grow. Our contracts are in place. We do not have any pricing or volatility that is present in UK and North China patients because 90% of our business in U.S. is OTC and 10% is RX. The volatility is very restricted more towards RX and then to OTC purchase. Our contracts are intact. So far, we've been fortunate that pharmaceutical is still exempted from the tariffs.
We do not see an impact, but uncertainty is definitely never a good thing because any new contracts, any more awards, all the buyers are waiting to see whether there will be a tariff implication or not. Since every now and then the timelines of tariffs are changing, or it's going to be like the economic review in July, the economic review in Q3, everyone says they agree with it because the last thing they want is to award more contracts and then after two months come back and a nurse coming back and saying, "Now the tariffs have come and now the price has changed, and we have to reinvent the cycle and come up with a new contract." That uncertainty, that visibility will come more when tariffs outplay itself, but it has dragged for the last three months because of no clarity of tariffs.
While India has been slapped with a 30% tariff, we are fortunate that pharmaceutical has not been impacted on those tariffs. We are seeing the goods. We are seeing essential items, whether it's groceries or other essential items, costful enough. Consumers tend to basically be more reserved and careful in their spending because obviously they have to allocate their groceries to essentials more than to commodities or luxury. You have restaurants that are now facing downturn of people because people would be able to spend more on groceries than on eating outside. In the same way for medicinal and some buying £100, they probably settle for £24. When you see something of the tariffs outplaying, although we may not be directly impacted, indirectly it has some impact, headline impact on the demand situation in the market. It has been a cascading impact globally because then companies tend to look at different geographies to compensate their revenue drop.
Thank you for the detailed explanation. My last question on the gross margin trend again. If I look at in the context of lower input costs and you have already kept inventory in the U.S., a trend to real inventory, is it fair to assume that we will have a similar gross margin as Q1 for the finance quarter, or would you like to give a broad range?
I think our gross margins will continue to be handy. We are optimizing our U.S. operations in terms of, as you know, in our U.S. facility, we import, we manufacture products, and a lot of raw materials are imported from China, which basically has tariffs right now. We are paying a 30% tariff on raw materials. U.S. has become more expensive to manufacture in the U.S. than in India. Hence, you know, we always explore to leverage low-cost base where there is a potential. We are working on the product mix to avoid the tariff implications on raw materials originating out of China. That will take another couple of months. Definitely, from the third quarter, you will see better bottom lines also coming from the U.S.
Overall, U.S., if you compare year-on-year, obviously, you can never compare the first quarter to the third or fourth quarter because these are the strongest peak seasons. You can never, we have always said, our business does not revolve around quarters, it revolves on a year-on-year basis. Seasonal impacts cannot be ignored on a quarter-on-quarter basis. If you look at it on a year-on-year basis, U.S. did grow by 30% over the last year.
Got it. Thank you so much.
Thank you.
Thank you. The next question comes from the line of Sudarshan Padmanabhan with ASK NDPNS 34.
Thank you for taking the question. Just going a little deeper on the pricing in the US, you mentioned that 40% of the business is RX. Especially the person who talked about high competitivity, the magnitude everyone has gone to basically, even if I assume that there is no seasonality, the year-on-year I'm basically seeing an INR 50 crore drop. If I assume that 50% of the 40% sales or 45% sales in the UK, the number of things are very different. Is there anything else that is basically driving a little bit more drop than probably one would have expected even as in the regulation?
No. I said there are two counts. One is obviously when you look at it from the season concept, there is a lull season in and obviously 40%. Then coupled with price erosion happening. A price erosion happens on RX. It can happen dramatically where all of a sudden qualitative products would not be viable because of the price erosion. Your revenue would drop accordingly, and your margins drop proportionately. Profitable products will become not so profitable because of price erosion. Revenue dropping means we decided not to probably sell half a dozen or more products because of the pricing pressures that are happening. If I actually look in overall, one is obviously the season was warmer and much more was worse than the previous year's season. This previous year's season didn't have pricing pressures and global phenomenons like tariffs. Out here, uncertainties on tariffs led to a much bigger cascading impact in the UK than in the Europe or anywhere else.
The four products that you have launched now should basically kind of bridge the gap between what happened last year and probably what we saw in the first quarter as you progressively move forward.
Yes. If you can share more on what are these products and how big they can be.
Obviously, you're bridging the gap. You said bridging the gap, obviously, a quarter is over. The first quarter is over. If you look at the second quarter, the numbers will be much better than the first quarter, and the third will be better than the second quarter. The fourth will be between the second and the third quarter. That's how the seasonality outplays in the UK. I think the first quarter is a one-off scenario, not in comparison to quarter-on-quarter basis, but in comparison to historic numbers. The quarter was subdued in the UK. These new products will add more towards the bottom line than the top line. You will see better profitability arising because these are more high-value products and not high-volume products.
You will see better profitability arising in the second quarter, much better arising in the third quarter compared to the first quarter, thereby, you know, the recovering to some extent.
With respect to Australia and New Zealand, that's the primary energy. That will get back from the second quarter.
That should come back. Australia has been reversed in the first quarter with winter out there while we are a coma. If you look at their last quarter, a lot of their winter sales Q4, they lift up their stocks because the winter season starts. They don't wait for the season to start, and then they sell. Most of the retailers, if you look at the Q4 number, are higher than the Q1 number. That resulted in a bit of a lull in the Q1 expansion.
One final question is, when you look at the glass half-full rather than glass half-empty, the gross margin expansion is quite favorable for the raw material prices coming down, the mix is improving, etc. This would kind of move forward. If I'm structurally looking at your margins, where we were probably towards 20%- 18%, just fast forwarding the launch issues that you are seeing, and the moment we reach a certain scale as some of the products pick up, should our margin profile be much, much better than what we were earlier?
See, I would love to be optimistic, but you know the global scenario itself where pricing pressure is there in certain markets. The UK itself constitutes 40%- 45% of our revenue. We cannot ignore a market of that size having pricing pressure. From a margins standpoint, yeah, a better margin point of view, we will improve quarter on quarter. Year on year, I think it will be more flattish somewhere around.
Sure. Thanks for that, Ahmed.
Thank you. A reminder to all participants, to ask a question, you may press star and one. The next question comes from the line of Aditya Pal with MSA Capital Partner. Please go ahead.
Hi. I'm I audible?
Yes, you are.
Yes. Thank you so much for the opportunity. I just wanted to double-click on your response to the previous participant's question that our UK market has a 50-40 split in favor of OTC. When we talk about the U.S. margins and pricing pressure not being there because of the favorable OTC rates, how are we going towards making the OTC mix higher in the UK market? I believe that would protect our margins and would help us at least not face pricing pressures from the competition.
That is going to be difficult in the UK, because historically, obviously, the UK has a, you know, in most of the countries, we adopted different strategies to get, you know, to get a strong foothold and create a presence in the market. UK, we had a very balanced portfolio of 50% OTC, 50% RX, and we brought over 300-plus market authorizations, most put together. US, obviously, we have a smaller portfolio compared to the UK, but the US, we looked at a window of opportunity and created a niche and identity for our call. Coming back to the UK, RX is a very important portfolio, and we are increasing our product portfolio in RX, to much more complex molecules and much more niche molecules, which are more value drivers than volume drivers.
If you look at our portfolio maybe one year down the line or one and a half year down the line, our portfolio will be much more robust and profitable because of the RX portfolio. That said and done, the inherent challenges of RX will always be there, but we have to just grow out of that. The historic products of RX will definitely be more volatile, and the newer molecules will be much more profitable. I wish we had to just kill one stroke ahead of the curve. This phenomenon that we are witnessing, you know, one has to understand, is probably never seen before. In the US, when you talk of tariffs, the tariffs have been probably the worst since the Great Depression in 1929. Technically, you know, the tariffs are even worse from the Great Depression of 1929, so no one could foresee that.
These are cascading impacts that are happening globally. We would recover a lot, a lot of lost ground. Our business model is still intact. We are still focusing on new product approvals and launches, and we will grow stronger and we will come out of this case.
Got it. A couple of quarters back, last year, in Q5, Q1, we had said that the target for 2026 is that we will reach a region of INR 3,000 crores. Listening to your response to the previous participant that the margins would be low, it's fair to say that we would not touch INR 3,000 crores, but be closer to INR 3,000 crores this year because of the entire tariff scenario uncertainty and, because of that, the cascading problems in our existing market.
I think you summarized it well. We should be very close to INR 3,000 crore or maybe shy away from INR 3,000 crore. Again, on the overall picture, we will still grow over last year. From INR 3,000 crore, we may be shy of that.
How are we thinking in terms of diversifying our revenues to Europe? For the last couple of quarters, we have been talking about acquisition but not being able to find one. Does it not make sense to start talking, at least expanding in the European markets organically?
Organically, it's a very diversified market. We are looking at now launching organically in Germany. It's a medium to long-term objective when you start organically. Inorganically has a better stronghold and foothold faster, and we can use it as a launching pad. That would have been ideal case scenario. That's what I'm done. We are looking at an organic exploration into these markets, focusing on various ones, not only Europe but also looking at India as a market. Let's not ignore that we have to safeguard our position, market share in the US too. We will do what is needed. If tariffs do not react to our expectation, we'll have to do what is needed to ensure we basically continue our growth path and definitely try to retain market share.
Last question. Obviously, there are no tariffs on pharmaceutical products in the U.S. In a case where tariffs on pharmaceutical products come, are there safeguard measures in our contracts where at least some part of the tariffs can be passed on to the customer?
Yeah. I mean, see, the tariffs work as a forced labor. Technically, all our customers are aware that if tariffs do come and if it's something which is abnormal, if it is a small amount, it's okay. If it is abnormally high, then we will have to go back to the customer and say, and put it forth. Obviously, we are optimistic and we are hopeful that our government reaches to some understanding with the U.S. government. That said and done, we have to have different, we are working on different strategies if things, if the tariffs are high and, you know, if it's not really going, if it's not really going to the retailer and asking them for pricing because we have secured contracts till 2027. The minute you go and ask them for a price submission, you are opening that contract up.
That's something which is a double-edged sword always. That said and done, all the retailers are understandable. They all have the same fear about just coming to pay the, it is not, it's not going to be, it's not going to be a surprise to them if you go back and tell them now price has to be adjusted.
Wishing you all the very best.
Thank you.
Thank you. The next question comes from the line of Maitri Sheth with Choice Institutional Equities. Please go ahead.
I think most of my undertakings have already been answered. On the European UK business, now that we are seeing some rising prices and uncertainty, is it safe to continue with double-digit growth, 15%, or should we look at it like a high single or low double-digit growth going forward?
Sorry, which market are you talking about? The company, the company, or you're talking about the UK by itself?
Oh, for the company, for our UK and Europe business.
For the UK market, we are talking about, I believe it will be flattish.
Okay. All right, Saldanha. Thank you.
Thank you. A reminder to all participants, to ask a question you may press star and one. The next question comes from the line of Deepesh Sancheti with Maanya Finance. Please go ahead.
Hello, sir. Just wanted to understand how will the India-UK SGA work for us in the long term?
Sorry.
Three days.
No, they are zero and five.
Zero and five. Okay. This quarter, we saw a lot of selling from Albin Mel, whom we have given the shareholder preferential. Have they discussed with the management about an exit strategy, and are they still on our board?
They are still on our board. They have not discussed anything where that is concerned. They said they should go to their call for tariff reasons or whatever. We don't know, but they have not disclosed this to us.
Okay. How much of the profit was actually impacted by one of, sorry, you were saying something. I'm sorry.
I didn't say anything.
Okay. How much of the profit this quarter was impacted due to one-time expenses? I mean, you mentioned about the ECL provisions and the things that are, how much of it is one-time and how much can be recurring?
Hi, Deepesh. This is Jitendra Sharma. As you have stated in the presentation, there were two items. One was the ECL provision, which we have made in receivables of INR 10.48 crore. There was one mark-to-market provision of INR 6.2 crore, which we have made. This has come from the forward contracts which we have taken for GBP exports to the UK. In the UK, last year, GBP was at 105, and we have done some forward selling of GBP for up to 109, 110 levels. This year, GBP has outperformed and it is hovering around 117, 118 right now. There is some mark-to-market issue that has come in the June numbers. These are the two items, which are kind of one-offs which we had in this quarter. We don't expect to see our receivables are pretty clean. Most of the receivables are from subsidiary companies only and top customers. This is the only item which we had coming from our emerging market situation. Broadly, we don't see any more sticky receivable in our books.
You also mentioned about the hire from employees who are due to new hires in the acquired facilities. Will that be recurring?
No, it is now a cold recurrency. If you compare a year-on-year number, in terms of the hiring, we are not having any more additional hiring. The employee costs and other expenses which you are seeing in this quarter, we don't see these two items going up any further from here.
Okay. Thank you. Thanks so much and all the very best.
Thanks.
Thank you. The next question comes from the line of Meet Rachchh with Equiris P&S. Please go ahead.
Yeah, thanks for the opportunity. My question is again on the margins. In this quarter, if we exclude the impact of ECL provisions, we are roughly at 17.8% margin. In one of the earlier answers, you mentioned that Q2 margins will improve from here on. I just wanted to understand that margins for the remaining three quarters would be higher than the current 17.8%. Second, is 20%+ margin doable in FY2027?
See, it is difficult right now to see the margin guidance. Definitely, our objective here is to see, number one, to ensure how can we sustain our margins, you know, which we had in last year. That's the priority right now for us. Definitely, the pricing pressure in the UK has softened the margin a bit. This should be somewhere in between last year's margin and the 17% what you are calculating. We agree this should be somewhere in between that.
Oh, for FY2027 as well?
No, this is for current year. For FY27, again, it's determined to, you know, give any guidance.
Understood. Let's go from there. Thank you.
Thank you. Ladies and gentlemen, to ask a question, please press star and one on your touch-tone telephone. The next question comes from the line of Ahmed Madha from Unifi Capital. Please go ahead.
Yeah, thanks for the opportunity again. Just to understand a scenario where there is adverse tariff, in that case, do we get benefit by having manufacturing capacity in the U.S. through time steps? Is it meaningful? As of now, how much of our manufacturing is happening in the U.S. and how much is happening in India and maybe some in the UK also?
In India, from a revenue point of view, about 35%- 40% is manufactured in the U.S. The rest is manufactured in India. As of today, India is more viable because a few of the items we manufacture in the U.S. are imported raw materials from China, where we pay tariffs. To answer your question, will we benefit from having a platform in the U.S.? Of course, we will benefit to some extent. Again, depending on what the tariffs are going to be, the quantum of tariff is the universal question. What is the tariff? What amount of tariff? Is it single digits, double digits? To what level is it going to go to? That is uncertain.
Based on that, when that unfolds, then I think you have to take concrete steps to retain our position and grow, based on our objectives and what growth plans we have for the U.S. Today, it does not make sense for us to panic because literally, I don't think anyone knows what's going to happen tomorrow. Based on that, we have to wait and watch as to how things unfold because if tomorrow, India does quite a better deal, and we are very optimistic on that, then taking panic steps, you know, that hire big time on us. Whether we are to expand the facility out there, whether we are to continue with what we are doing, whether we are to leverage workforce manufacturing from India, these uncertainties are the ones that are most unpredictable and difficult to answer. I guess the market is, I mean, we don't have a crystal ball. The market is basically wait and watch, watching on what will unfold tomorrow.
I would like to add here that our balance sheet is pretty strong. In case there is need to do additional investments in the U.S., we definitely will not shy away from doing that. That way, we are very well equipped and geared. Depending on the circumstances needed, we will take the next steps.
A question was from the perspective of do we have a hedge in terms of having capacity in the U.S.? My question is from both from the.
We have capacity in the U.S., but it cannot compensate because we have a very diversified portfolio out here in India that is serviced in the U.S., starting from RX to different dosage forms. U.S. is only a solid oral dosage form that we have. Technically, while we may benefit from a part of it, we would not be able to benefit fully from it.
Got it. Got it. Yeah, that's the information. Thank you.
Thank you. The next question comes from the line of Deepak Rao with KNR Securities. Please go ahead.
Hello, sir. I'm I audible?
Yes, you are.
Sir, I just want to ask, how much is the revenue contribution from save-off activity currently, and what kind of growth do we expect in FY2028?
Like I answered, in the last quarter, we were trending more towards INR 400 crore. This quarter, we are trending more towards INR 500 crore. Technically, I would say we have another 40% utilization that we can do. Our aim is to go towards INR 800 crore from the facility. We have potential of growth. This is happening on a month-on-month basis. We are aiming forward on that.
Got it, sir. The only question I have to manage is Australia and New Zealand. I just wanted to check how this market is expected to perform in the coming quarter.
It is pretty much how it will be the flattest in terms of what is historically done. We will show a nominal growth, but technically, overall, year on year, it's difficult to talk about quarter on quarter, but year on year, we will definitely show a better number than the previous year.
I've got it, sir. Thank you so much.
Okay.
Thank you. A reminder to all participants, to ask a question, you may press star and one. Ladies and gentlemen, to ask a question, you may press star and one. As there are no further questions from the participants, I now hand the content over to the management for closing remarks.
Support for the company. I wish you a very good evening and a safe day. Thank you.
Thank you.
Thank you. On behalf of Marksans Pharma, that concludes today's conference. Thank you for joining us, and you may now disconnect your lines.