Aarti Drugs Limited (NSE: AARTIDRUGS) Q3 2025 Earnings Call dated Jan. 30, 2025
Corporate Participants:
Adhish Patil — Chief Finance Officer & Chief Operating Officer
Vishwa Savla — Managing Director
Harit Shah — Whole time Director
Analysts:
Ankit Gupta — Analyst
Dhwanil Desai — Analyst
Rashmi Shetty — Analyst
Hitesh — Analyst
Neha Karodia — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q3 FY ’25 Earnings Conference Call of Aarti Drugs 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 an operator by pressing start and on your Touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr Adhish Patil, COO and CFO, Aarti Drugs Limited. Thank you, and over to you, sir.
Adhish Patil — Chief Finance Officer & Chief Operating Officer
Thank you. Good morning, everyone, and a warm welcome to present our earnings conference call of Aarti Drugs Limited. On this call, we are joined by Mr. Harshit Savla, Joint Managing Director; Mr. Harit Shah, Whole-Time Director of Aarti Drugs Limited; and Mr. Vishwa Savla, Managing Director of Life Science Private Limited; and SGI, our Investor Relations Advisor. I hope everyone had an opportunity to go through the financial results, press release and investor presentation, which we have uploaded on the stock exchange and on our company’s website., we are pleased to announce that Aarti Drugs has recently received approval following a successful inspection by the USFDA plant by the USFDA authorities at its API manufacturing facility located at plot number E22 Tarapur, Maharashtra. Now the company is in receipt of the Establishment Inspection report, also known as EIR. EIR is a report which includes details of audit terms. Due to this, company can now export products — its API products such as HL,, HCL,, in the US market in coming years. This milestone underscores the company’s commitment to maintaining high standards in its manufacturing operations. Additionally, we are excited to share that has entered into a share subscription and shareholders agreement with Green Power Private Limited and Green Power 6 Private Limited for special-purpose venture. The initiative is aligned with the company’s commitment to green energy and optimizing energy cost. As part of this agreement, Aarti Drugs will acquire at least a 26.25% equity stake in the SPV in compliance with applicable electricity loans. The SPV is formed for developing, constructing, operating and maintaining a solar power plant for captive consumption by the company. This solar plant will give us approximately 8.9 million renewable units per annum and it is expected to commence the operation by end of H1 FY ’26. This can result to a full-year annual saving of around INR3.6 crores for our Gujarat plant. This initiative will reduce around 1,000 tons of carbon dioxide emissions due to use of renewable energy. The company remains committed to further take more such initiatives in near-future. Also, we are delighted to share that our EcoVadis assessment score for current year is 69 — the 89th percentile globally and we have already secured the silver medal for the company as a whole covering all the locations. Platform helps you manage ESG risk and compliance, meet corporate sustainability goals and drive impact at-scale. This should also help the company in marketing its products in highly regulated markets like Europe and US. Coming to the financial performance for Q3 FY ’25, the company reported a revenue of INR568 crores compared to INR607 crores, reflecting a slight decline of 6%. This is mainly due to reduced market prices and weaker demand in formulation segment and antibiotics API segment. Although prices remained stable during the December quarter, there was a slight negative price when compared to same-period last year. Despite this reduction in revenue, the gross profit increased by 7%, reaching INR207 crores, up from INR202 crores. Formulation revenue for the quarter stood at INR48.6 crores with 47% of its revenue coming from exports. We are focused on strengthening our export-driven growth while managing the domestic performance. Now coming back to API segment, the greenfield project at Saikra Gujarat for specialty chemicals, which is also related to the backward integration will commence trial production in this quarter, most probably in the month of February itself with this, the operating leverage is expected to kick-in from the subsequent quarter with improved capacity utilization. This will also help us in improving our gross margins. There had been certain issues in Tarapur greenfield project, which are sorted now and we expect to ramp-up the production to 500 plus tonnes per month-by end of March ’25. So in total, we will have a sequential ramp-up of capacity of 1,500 metric tons per month-by end of FY ’26. We are further enhancing our capability with the addition of capex by updating facilities by the end of this financial year, which will broaden our market reach and product diversity. Over the years, we have dedicated our efforts in developing niche capabilities by leveraging our expertise and innovative approach. Through continuous research and development, we strive to stay ahead of the curve, pushing boundaries and setting new standards for product innovation in our segment. During nine months FY ’25, the company incurred capex of INR136 crores, mainly towards capacity expansion, backbone integration and new product launches. We anticipate a total capex of around INR200 crores for the full-year. This capex would be mainly through internal accruals and partly through term loans. By controlling the entire supply-chain from raw materials to finished goods, we significantly reduced our reliance on external vendors. This integration allows us to maintain strict quality-control at every stage of production, ensuring that we consistently meet the highest standards. Although we are currently dealing with some short-term challenges, our focus remains on our long-term goals. We are optimistic that our ability to achieve strong double-digit growth in revenues in the coming years. For FY ’26, we are aiming for EBITDA margin between 13% and 14%, which highlights our commitment to maintaining financial health and enhancing operational efficiency. Despite API pricing pressures driven by fluctuating raw materials, heightened competition and regulatory demands in global markets, we remain committed to achieving growth and profitability by enhancing operational efficiencies and expanding our market presence in regulated markets. We are dedicated to tackling these challenges and emerging stronger in the future. And with this, we can now begin question-and-answer session. Thank you.
Questions and Answers:
Operator
Thank you very much. Ladies and gentlemen, we will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on the touchstone 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 you. The first question is from the line of Ankit Gupta from Bamboo Capital. Please go-ahead.
Ankit Gupta
Thanks for the opportunity and congratulations for getting US-FDA approval for our API plant. So my first question is on this approval and the kind of opportunity this opens up for us. So Adhish, if you can talk about how much revenue we can generate post this US-FDA approval from this plant? And how do you see the US market opening up for us? What are the plans to go there? What kind of margin improvements we can see from once we start production from this plant and sell into the US market?
Adhish Patil
Yeah. Hi, so our current USFDA plant has two main production lines and in addition to that, it has one small pilot skill line for niche means high-value and low-volume players. Now if we go to the full potential of the plant, we can reach INR270 crores to INR80 crores per annum. But having said that, we had — we had actually in past plans to further expand our USFJ block and we had in fact put up on building, but we halted that capex because we received more later back then. So two more big production plants can come in. So with that probably we can double the current potential of INR70 crores to INR80 crores per annum. However, the margins from this plant would be quite different from what we make in rest of the units. In fact when USFD importer has struck us the product which you are selling in the US market through this facility was having EBITDA in almost, you can say late 30s the EBITDA margin. So we can at least expect 30 plus EBITDA margins coming from this facility.
Ankit Gupta
Sure. But, hello. Yes. Yeah. But I think the market has — even the regulated markets for the products that we do have become more competitive now, there have been more players which have gone into and the kind of product that we manufacture currently seem to be relatively a pretty competitive kind of products. So when we had USFDA approval, the times — like the times have changed significantly now. So do you think 30% plus kind of margins from this plant is possible even currently or is this going to be —
Adhish Patil
Yeah, actually it is quite possible because when it comes to API manufacturing facilities for USFD, so there are very limited facilities which manufacture APIs for USFD. I think in formulation, it might be slightly different, but in the API space and the main trick is to manufacture that product year round. Means if there are more changeovers in the plant, obviously, the EBITDA margins get hit because of the changeover. It takes a lot of time and you lose around 14 15 days for each changeover in terms of capacities. So the key would be to keep one-product in one production line and try to run it as maximum as possible. And if we are able to do that, I think 30-plus EBITDA margin should be fairly achievable based on what prices we observe for the APIs even in the European markets, the price is quite high.
Ankit Gupta
That’s. Which products we plan to manufacture here in this plant?
Adhish Patil
Yeah. So there are certain products where we already have US DMFs. Obviously, now there will be more queries from US to update the DMFs now that the plant is underway has taken. So we — in fact, we have received few queries and we have been responding to them. So we hope that this old products, if you can run them for maximum period of time without changeovers, then it should get us that 30 plus EBITDA margin.
Ankit Gupta
Okay. But when do you start selling to the US market post operation of the DMS from here? Sorry. Like when do you like can we start imaging?
Adhish Patil
Okay. Understood. So the first market I think which shall open up should be the European markets for us because we had importal from that facility. Even though we had approval, we were not able to sell even in the European markets. So I think the first would — faster would be in European markets and then US markets as well. But as you correctly pointed out that because this is highly regulated market, the gestation period is higher. So the meaningful contribution may not come from FY ’26 itself, probably it will start flowing in FY ’27.
Ankit Gupta
Sure, sure. And on the other markets that we do in our segment, so how is the market scenario currently? Now you have mentioned about the price pressure continuing, although there is some stability in this quarter, but even on Y-o-Y basis, we have seen, as you have mentioned in the press release and presentation that the pricing pressure on a Y-o-Y basis continues. So if you can talk about how is the scenario in the market currently for the markets we cater to domestic as well as unregulated markets? And how do you see this scenario panning out for us in next year, although you mentioned that we should improve our margins to, to 13%. If you can talk about the industry landscape currently and competitiveness.
Adhish Patil
Okay. Okay. So first, talk about the December quarter, which went by. So in the December quarter on Y-o-Y basis, we have seen a price decline of only around 2% to 2.5% on an average basis. So it is not that much. It was expected by us that on Y-o-Y basis, the price negative variation should decrease because the decline in the prices had started back-in December ’23 itself. So — and the current prices quarter-on-quarter prices, they are seeing a similar trend. This only couple of percent we have seen, the prices have gone down. In fact, in certain products, the prices have gone up as well depending upon the raw-material scenario. So what we see now is that further price decline should not be there. In fact, it is not there in last quarter as well throughout the three months I’m saying. And if at all, if the crude starts going up, you know, probably because of the Russian sanctions or whatever, in case it goes up, the prices of API might in fact see an upward trajectory. But even if it stays stable and in fact, I would say that it will stay stable, it is good for us. There should be gross margin unlocking, which might take-in coming quarters purely because in the falling trend because we carry an inventory of around 90 to 100 days and we do basis for accounting, it always impacts our P&L in the falling raw-material as well as selling prices scenario. So now that it has stabilized, I think the margin — gross margin should in fact improve on a sequential basis.
Ankit Gupta
And one question on the medium to long-term basis with the CUS FDA approval and you know our specialty chemicals plant or commencing operation, but hopefully in this quarter. No and over the next two, three years, given how the pricing pressure is currently and let’s say, the prices remain for the APIs, our products and specialty Chemicals remains around that. Two, three years down the line, how do you see the revenue and the margins panning out for us, let’s say, in ’27, ’28.
Adhish Patil
So the revenue guidance what we had given means obviously we revised it down in last quarter because of the fallen prices to say roughly around INR4,000 crores of revenue on a consoled basis is still achievable in three three years time but as far as margins are concerned what see? We can say that if the situation what is there now, if it remains like that for next two to three years, we should definitely start inching towards 15% EBITDA margins, frankly speaking. And we are basing that estimate based on few factors like one is backward integration as we pointed out in the specialty plant in Saika. Second is the higher utilization of the capacities of the second greenfield project that is the acid that should give us positive impact on the gross margins and EBITDA margins. And thirdly, based on the regulatory approvals, which we have got in this USFDA apart, we have also got approvals for certain products. And also recently, we were inspected by, the Brazilian authority. A few of them were the renewals, so that is okay, but one was related to the antifungal product of ours, which was the first time so that it has a big market in Brazil. So that will also help us grow more-and-more in higher-margin markets. So based on all these factors, we feel that we should inch towards that 15% EBITDA margins in two years’ time.
Ankit Gupta
Sure. Thank you and wish you all the best here.
Operator
Thank you. Ladies and gentlemen, to ask a question, you may press star and one. Thank you. The next question is from the line of Dhwanil Desai from Turtle Capital. Please go-ahead.
Dhwanil Desai
Hi, Adhish. Good morning and congratulations for UFFDA approval. So my question is, if I go back-in the history of a company, when we were making this 34%, 23%, 34%, 35% gross margin. At one point in time till 2015, 16, we are making 14% 15% EBITDA margin. While we are now with 16%, 166% material cost, which is 34% gross margin, we are now making 12% EBITDA margin with much higher revenue. So do you think this is because of the underabsorption of the cost from the newer facilities and hence operating leverage itself is good enough to take margin to, 14% 15% even without any improvement in gross margin that you are alluding to. So any thoughts on that?
Adhish Patil
Yeah. It’s an interesting question and nice observation actually. So yes, what you say is correct. We had — we had last year, this is since the beginning of the year itself, we start this current year FY ’25. We started with the greenfield project of and frankly speaking, it caused quite a bit of drag as far as profitability is concerned. If you talk about EBITDA level I can say we at least a percent of drag it might have created had it been properly utilized and along with that there are certain products in there are certain products which we have scaled-up in terms of market-share but we haven’t really put the most efficient process at the plant scale and there are plants since we have already since then the R&D, made the process ready. So we will be going with small brown — not — I won’t say it’s brownfield expansion, but it’s more related to the modification. Some brownfield capex would be there, mainly to the across contribution profile of certain antibiotic products where we are strong in terms of market-share, but we are not that strong in terms of profitability. So I think with those few changes, the profitability will be right on-track with the higher utilization of the greenfield facilities which have come up online and with a few in the processes of in antibiotic space. And in last particular quarter, our formation segment also did not do well, which have created further a bit of drag in terms of EBITDA margin, but that is related to the December quarter. Perhaps for the coming quarter,, Vishwa, are you online?
Vishwa Savla
Yes, yes.
Adhish Patil
Yes, can you explain the recent future.
Vishwa Savla
Sure, sir. So for the current quarter, basically, we had a lower sales both specifically in the domestic market and also in some of the international markets, we had a slightly lower sales. However, going-forward in over the next two quarters, we have a strong order book. So we will be seeing a good growth, especially in the export segment now?
Dhwanil Desai
Okay, okay. So essentially, so I think our formulation segment was close to INR300 odd crores, if I understand correctly. So how do — how should we look at if formulation segment both in terms of top-line and margins going-forward? Thank you.
Vishwa Savla
Yeah. So in the very short-term, it was in the next coming quarter, we are expecting a flattish growth. But over the next — for the next financial year, we have prepped up our capacities. So there is — we recently-completed a brownfield expansion in the formulation segment, which has added about 30% additional capacities for which revenues will start kicking-in from Q1 and we have also received the UK-MHRA and the USFDA approval for the formulation plants over the last few quarters. And we are also expecting to launch a few products, a few new products from that site. So considering all of that, we are prepped for a higher-growth with the added capacities and new products and the shift of revenue more from the domestic segment, which is CMO to the international markets, we would also see a considerable improvement in the EBITDA?
Dhwanil Desai
Got it. One last question and I’ll come back-in the queue. So another question, Adhish, is that, let’s say, next year we are expecting a decent growth and that I assume it is based on the — there is no negative rate variance that we are kind of factoring in that number. So with this new capacity coming in and no negative rate variance, can we look at 20% plus kind of a volume growth next year.
Adhish Patil
Yeah. So volume growth, we will definitely try for 15% to 20%, no doubt about that. We’ll try to — with the help of salicinic acid, I hope we’ll get to those numbers where however, as far as the negative rate variance is concerned, you know what I see is if you see current year-on a sequent — on a sequential basis, quarter-on-quarter, so June quarter then September and in December. I think there was in total, the way we started the quarter and where we are right now, we have seen some 5% to 7% price drop-in the current financial year itself. Now it is not dropping December onwards, but so say let’s say 6% and for half year, so probably 3%, 2% to 3% on entire yearly basis, there might be a negative rate variance for FY ’26.
Dhwanil Desai
Okay. So essentially, then we are looking at let’s say, 15% 20% volume growth and 2%, 3% negative rate variance, then we’re looking at 15% value growth over next year. Is that how we should look at it much better margins?
Adhish Patil
Great. Correct.
Dhwanil Desai
Okay, got it. That’s it from my side. Wish you all the best,.
Operator
Thank you. Participants or wishes to ask a question may press star and one now. The next question is from the line of Rashmi Shetty from Dolat Capital. Please go-ahead.
Rashmi Shetty
Yeah. Thanks for the opportunity. Just a bookkeeping question on the other expenses. This quarter it seems to be pretty high compared to the — on a Y-o-Y basis, if I just compare. Is it that it is taking up all the new facility cost also or there are more to come yet? Is this a new base that is what need to be understood from a quarter — from a quarter-to-quarter perspective.
Adhish Patil
Yes, actually this year — sorry, this quarter, we have additionally provided around one share of doubpool takes, so there are slight bump because of that. And certain cost was related to the CPs — the CPHI fares, which took place in the quarter of December and because of the Diwali expenses. So because of that, there was slightly higher other expenses in this quarter.
Rashmi Shetty
Yeah. So these are non-recurring in nature, you mean?
Adhish Patil
Yeah. Yes.
Rashmi Shetty
Okay. And the cost — the fixed-cost related to the newer facilities of the two green greenfield facilities, that cost is expected to come in the coming quarters or it’s already been expanding?
Adhish Patil
Yes. So for the first greenfield projects, which was in Talapur, so that we have done put to use. So all those costs — costs are being experienced out, including the interest as well as depreciation as well for the first greenfield project. For the second greenfield project where the trial production will be starting now, once you know, the trial production is successful. Once we are sure that at plant-level, there are more fielding issues, then immediately will and then after that, the additional cost of the second greenfield projects will start coming in.
Rashmi Shetty
Understood. And your specialty segment quarter-on-quarter has improved. These — this is basically from the existing products only or you know from the — from the new brownfield plant or from the new Saika plant, if you can elaborate on that part? And how should we see the specialty segment revenues in-quarter four as well as in FY ’26?
Adhish Patil
Okay. So the specting revenues mainly was because of the campaign-based products. There are certain products which are old, old products itself but there are campaign based requirement. So that is why this last quarter we did well. Having said that, the chlorocel line expansion what we had done, actually there was — there is a slight update in that. So we were planning to have that 300 to 400 tonnes per month capacity on — with a different continuous process. However, what we have seen is that in that — because of that new process, the quality of that particular raw-material is causing lower rates in the derivatives. So because of that, the acceptability of — in the market of that product may not be high with that the newer process. So that is the reason why we have taken a call, roll-back that process to the old one where in fact, in fact, last nine months, we have been suffering losses because of this quality issues for that closed self-commission, the newer chlor of line which has been rolled back and now all those losses have been already curtailments. In fact, now it is running more efficiently with the — in the batch format. So there will be slight improvement in gross margin on the immediate basis from March quarter onwards. But as we scale-up that with the old process, the margins should improve. And we are taking steps to increase that capacity to the original plant levels with the older process as well that might take some time, three, four months-to come up with that capacity.
Rashmi Shetty
So the brownfield plant, you know the — for the — that for the chlorosulfurnation line, that is rolled back and is it going to start again or you might look at greenfield plant for this line,
Adhish Patil
Yeah, so that three — it was some 300 to 400 tonnes per month. So it has been rolled back 200 tonnes per month and now it is operation it is operational at 100 tonnes per month as of now,
Rashmi Shetty
But it will be continued. Right at 100 tonnes, it will be continued at the same capacity.
Adhish Patil
So this is a new fresh plant we are talking about. So it will continue with 100 tons and not with that 300 tons. But anyways we never reached that much. We were operating that plant only at 40 to 50 tonnes per month.
Rashmi Shetty
Got it. So just to understand this quarter was mainly driven by the products and you are expecting similar sort of revenues in-quarter four also?
Adhish Patil
Yeah, more or less, that should be a correct way to look at it?
Rashmi Shetty
Okay. Okay. And any plans for your greenfield project for line at Dahej, anything which you are planning or it will get further delayed?
Adhish Patil
No. So that project is almost done. So we are starting we also we got all the necessary permissions poison permission and the explosive permission. In fact that was the main reason for a bit of delay, but we got all that. We also program the raw materials. So anytime soon, we will be starting the trial production in that plant. So very soon. In the age plant you meant this is the plan. Dahej plot we haven’t started the project yet. We have the plant parcel, but we haven’t started the project yet in Dahej. What I was talking about was of, which is again in the project.
Rashmi Shetty
Okay. So just to clarify, Saika is an product side and the AG
Adhish Patil
No one is mainly for backward integration for anti-diabetic and along with that it will have which you can say byproducts which will be expecting products which we’ll be selling outside.
Rashmi Shetty
Got it. So basically we just have one new line of only that which is a groundfill — which is a brownfield plant, right?
Adhish Patil
That is in Talapur, correct?
Rashmi Shetty
Yeah. Okay. Okay. Thank you. That’s it from my side.
Operator
Thank you. Participants who wishes to ask a question may press star and one now. The next question is from the line of Hitesh from HDFC.
Hitesh
Yeah, good morning, sir. I hope I’m audible.
Operator
Sir, there is a lot of disconnects from your background.
Hitesh
Can you hear me now?
Operator
We can hear you can you hear me now?
Hitesh
Can you hear me now?
Adhish Patil
Yes, please join.
Hitesh
Yeah. So I have a question on the slide number 33 where you have mentioned that product and development of product kind of pipeline. So can you just explain which products you are planning to launch maybe 15 months from now or maybe by end of FY ’26? This is my first question.
Adhish Patil
Okay. So,, would you like to highlight on the formulation front?
Vishwa Savla
Sorry, I was just correctly, I just joined back.
Adhish Patil
So what they want to know — what they want to know is what products are we planning to launch in next 15 months, one to two years, I think?
Vishwa Savla
Right. So we have — in the oncology segment, we have five products where we are either filed or will be filing very soon in the US as well as Europe. So these are the latest oncology products. So products like and lenalidomide on some — these are some of the products that we are planning to launch both in North-America and in Europe and of course in some of the emerging markets, as well as we are launching some of our anti-diabetic portfolio in the DPB4 inhibitors and SBLT tools. So we have about six or seven products in that category that we will be launching over the next 1.5 years
Adhish Patil
Okay, okay. And sir, on API side as far as the hello, yeah, yeah, I can. I can hear you. Yeah. And as far as this API and other, the spectrum line is concerned so we have now a dermatology product. So we are ready with a few derivatives of that product as well. So it all depends on how quickly the sales of the dermatology product picks up. If it is normal, then we can — we also have the option to manufacture the derivatives of that, which goes in cosmetic and skin line. And the methalamide-based products what we were talking about is actually the greenfield project, which is happening in. So that would be mainly because we’ll be going for backward integration, there will be some sister products or byproducts you can call, which will come out. So we’ll have to sell that. So those will be those products. And antifungal, we recently have launched since last few months and now you can already see that the contribution to the sales has already increased by 3% year-on-year so that was the one not
Hitesh
Okay. Just one clarification, sir. You mentioned that all these products will be launched, particularly the greenfield product — greenfield plan will be launched from — in this month itself or the commissioning will start at this month, right?
Adhish Patil
So you can see it will start greenfield products will start this quarter itself actually. So let’s say by Q1, you can start seeing the results of the sales in the financial year.
Hitesh
The product from your facility will start display or commercial orders will start in Q4. Okay. Thanks, sir. Thanks for. Thanks, sir.
Operator
Thank you. The next question is from the line of Neha Karodia from Abakkus. Please go-ahead.
Neha Karodia
Yeah, hi. Thanks for the opportunity. So my question was regarding the negative price variance in the APIs. So is there any particular API that we would want to highlight wherein the price decline may be higher as compared to the other general APIs?
Adhish Patil
So mainly what we have observed mainly it is the antibiotics segment, where the price decline was more than other products. In some products, it was in fact positive as well, but it was mainly due to the antibiotics segment.
Neha Karodia
Okay. And any comments on the met prices?
Adhish Patil
Harit would you like to answer this?
Harit Shah
No price of methan prices are very stable now. As of now, there is no change absolutely.
Neha Karodia
Okay, understood. And in the anti-diabetes portfolio, as of now, which are the other contributors other than met?
Adhish Patil
Yeah. So we have another product called which goes along with in our anti-diabetic category. And we have as well. And glifting is another product, which means that there is not a meaningful contribution yet, but we have that — we have taken commercial matches of that product as well.
Neha Karodia
Understood. And also in terms of revenue contribution from met format for overall APIs, how much would it be?
Adhish Patil
So anti-diabetic question on standalone basis, I think it was almost around 12% to 13% now for the anti-diabetic segment. Yeah, understood. It is around at that level for the standalone company.
Neha Karodia
Understood. Okay. Thanks for answering the questions.
Operator
Thank you. Participants who wishes to ask a question may press star and one ladies and gentlemen, to ask a question, you may press R and one. As there are no questions from the participants, I now hand the conference over to the management for closing comments.
Adhish Patil
Thank you. So thank you everyone for joining us today in the earnings call. We appreciate your interest in Drugs Limited. If you have any further queries, please contact SGI, our Investor Relations Advisor or us directly. Thank you and have a nice day.
Operator
Thank you. On behalf of Aarti Drugs Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you. Thank you please.