Aurobindo Pharma Limited (AUROPHARMA) Q3 FY23 Earnings Concall Transcript

Aurobindo Pharma Limited (NSE:AUROPHARMA) Q3 FY23 Earnings Concall dated Feb. 10, 2023.

Corporate Participants:

Deepti Thakur — Investor Relations

Santhanam Subramanian — Chief Financial Officer

Satakarni Makkapati — CEO of Aurobindo Biosimilars, Vaccines and Peptides businesses.

Swami Iyer — Chief Executive Officer, North America

Yugandhar Puvvala — Chief Executive Officer

Analysts:

Damayanti Kerai — HSBC — Analyst

Raunak Thakur — ICICI — Analyst

Jayakumar — — Analyst

Nitin Agarwal — DAM Capital — Analyst

Unidentified Participant — — Analyst

Aishwarya — — Analyst

Nikhil — — Analyst

Tarang Agarwal — Old Bridge Capital — Analyst

Abdul Kalim — — Analyst

Shyam Srinivasan — Goldman Sachs — Analyst

Presentation:

Operator

Welcome to Aurobindo Pharma Q3 FY23 Earnings Call. [Operator Instructions]. I now hand the conference over to management for opening remarks. Thank you and over to you.

Deepti Thakur — Investor Relations

Thank you, Vandit. Good morning and a warm welcome to our Third Quarter FY23 earnings call. I am Deepti Thakur from the Investor Relations team. We hope you have received the Quarter FY23 financials and the press release that was sent out yesterday. These are also available on our website.

I would like to introduce my senior management team today on the call with us, represented by Dr. Satakarni Makkapati, CEO of Aurobindo Biosimilars, Vaccines and Peptides businesses; Mr. Yugandhar Puvvala, CEO of Eugia Pharma Specialities Limited; Mr. Sanjeev Dani COO and Head, Formulations for Aurobindo Pharma Limited; Mr. Swami Iyer, CEO, Aurobindo Pharma USA; and Mr. S. Subramanian, CFO.

We will begin the call with summary highlights from the management followed by an interactive Q&A session. Please note that some of the matters we will discuss today are forward-looking including and without limitations, statements relating to the implementation of strategic actions and other affirmations on our future business, business development and commercial performance. While these forward-looking statements exemplify our judgment and future expectations concerning the development of our business a number of risks, uncertainties and other important factors may cause actual development and results to vary materially from our expectations.

Aurobindo Pharma undertakes no obligation to publicly revise any forward-looking statements to reflect in the future events or circumstances. With that. I will hand over the call to Mr. S. Subramaniam for the highlights. Over to you sir.

Santhanam Subramanian — Chief Financial Officer

Good morning, everyone. I wish you all a very happy and prosperous New Year. We are here to discuss the results for the third quarter of the fiscal year FY23 declared by the company. For Q3 FY23, the company registered a revenue of INR6,407 crores, an increase of 6.7% over Q3 of last year and 1.6% over the previous quarter. The EBITDA before ForEx and other income stood at INR954 crores. EBITDA margin for the quarter was 14.9%, an improvement of 30 bps over the previous quarter.

The margins improved on a quarter-on-quarter, despite increased R&D spend during this quarter by INR140 crores over previous quarter. The additional R&D spend amounts to 1.7 on the EBITDA margin. The net profit stood at INR491 crores, increased by 19% or previous quarter. In terms of the business breakdown, Formulation business in Q3 FY23 witnessed a growth of 9.2% year-on year to INR5,452 crores and 14.3% quarter-on-quarter and contributed around 85% of the total revenue.

API business contributed around 15% and clocked a revenue of INR955 crores for the quarter. For the quarter, the revenue from US market has improved by 9.3% year-on year to INR3,001.2 crores. On a constant-currency basis US revenue was flat year-on year and improved by 10.3% quarter-on-quarter to $366 million. We have received final approval for 15 ANDAs and launched 11 products in the quarter under review. We have filed 11 ANDAs, including six injectables during the quarter.

Revenue for Pharma USA, the company making overall products in the US has increased 2.5% year-on year for the quarter in rupee terms. Revenue for US Specialty business in the US increased by 6.1% year-on year to INR501.5 crore for the quarter. Including the direct sales the overall oral sales amount to $252 million against $230 million of previous quarter, a year-on-year growth of 9.5%. The company as on 31 December 22 has filed 767 ANDAs on cumulative basis, of which 542 has a final approval and 38 having tentative approvals, including eight ANDAs which are tentatively approved under the PEPFAR and the balance 182 ANDAs under review.

For the quarter European Formulation revenue clocked INR1,701 crores. Marginally it’s a 4% year-on year growth, an increase of 12.2% quarter-on-quarter. On a constant-currency basis, Europe revenue touched EUR203 million against the EUR189 million of last quarter. For the quarter, the growth market witnessed a growth of 26% to INR499 crores. The quarter performance was led by a strong growth in Brazil and Canada business.

For the quarter ARV business stood at INR251 crores, growth of 61% year-on year. Growth in dollar terms, the growth was 47%. R&D expenditure is at INR415 crores during the quarter, which is 6.5% of the revenue against 4.8% of the previous quarter. Net organic capex during the quarter is $82 million. This includes normal capex of $43 million, Penicillin G Project $23 million and third-party development expenditure around $16 million.

The cumulative Pen G capital expenditure is $89 million against the estimated expenditure of $250 million as on 31 December. The average ForEx rate was INR82.1075 [Phonetic] on-site in December ’22 against INR79.6123 in September ’22.

Net cash, including investments at the end of September were $203 million. The average finance cost is 4% mainly due to having multiple currency loans, and with the increase in the Fed rate, the interest cost has gone up. Against the total finance cost of $45 million we earned INR42 crores as investment income from our investment. So net-net our net finance cost is around INR3 crores.

Gross debt remains at $493 million. The gross cash reduced from $831 million to $700 million at the end of the quarter. This all from our end and we are happy to take your questions now. Thank you.

Questions and Answers:

Operator

Thank you very much. [Operator Instructions] The first question is from Damayanti Kerai.

Damayanti Kerai — HSBC — Analyst

Hi, good morning. I hope I’m audible.

Santhanam Subramanian — Chief Financial Officer

Yeah.

Damayanti Kerai — HSBC — Analyst

Okay. Hi, everyone. So thank you for the opportunity. My first question is on US. So quarter-on-quarter, you have seen good recovery. So how should we see US trending ahead and which are your focus segments? So we understand injectable is one which is picking up well. But if you can just talk about US outlook in coming quarters or so.

Santhanam Subramanian — Chief Financial Officer

Yeah, thank you, Damayanti. So this has been a good quarter for us. We witnessed relatively better quarter on all major parameters like demand, volume, net sales and we had stable pricing. They have been higher demand for some of the product funding due to seasonal factors. We also anticipate that the present trend would continue going into the next quarter and next fiscal year.

Damayanti Kerai — HSBC — Analyst

Okay, you mentioned stable pricing. So this is for your portfolio or you are observing in general a similar trend for the industry?

Santhanam Subramanian — Chief Financial Officer

We can talk about our portfolio, because that’s something we have first hand knowledge. We really can’t say beyond that. Some of our products — see this is on a net basis, we have some prices. There is always some price which goes down, some price which goes up. We have seen in the past that mostly, it has been going down. But now we see — so if you ask me net-net, I think we are pretty neutral.

Damayanti Kerai — HSBC — Analyst

Okay, and my second question is on your R&D. So obviously I understand due to some progress in clinical trials sector, we have seen a sharp jump. But in general, how should we again look at this part moving ahead?

Santhanam Subramanian — Chief Financial Officer

So the R&D cost, we had the $415 million — INR415 crores for the quarter, against INR278 crores in the previous quarter. The main consequence of the R&D cost is the CuraTeQ biosimilar. I suggest Satakarni can you — like to elaborate on the biosimilar.

Satakarni Makkapati — CEO of Aurobindo Biosimilars, Vaccines and Peptides businesses.

Yeah, thanks. Subu. So Damayanti, Subu had mentioned the contribution towards the R&D expenditure primarily is because of the advancing Phase III portfolio of our programs. As we talk now we have three products in Phase III clinical trials. One of them, reaching the closure of the clinical trial and two of them actually in clinical trials now with about 30%, 40% of the recruitment done.

So we forecast the clinical expenditure to continue for at least another six to seven quarters time from biosimilars, because the pipeline is maturing, which is good news for the organization. So yeah, that’s my guidance on the subject.

Damayanti Kerai — HSBC — Analyst

Okay, and my last question. Sir last quarter, we obviously heard lot of, I think issues due to what we saw in the — like what was there with management team et cetera. So in terms of governance improvement what steps you have taken so far, say compared to previous few quarters?

Santhanam Subramanian — Chief Financial Officer

So in terms of — what is that you said, in terms of —

Damayanti Kerai — HSBC — Analyst

Sir like previous quarter obviously. I think we had seen some development related to — yeah, yeah.

Santhanam Subramanian — Chief Financial Officer

Okay, you are talking about that. In terms of during the quarter what we have done it based on discussion which are going on with the investors in the last one year, et cetera, we have increased our independent — I mean directorate by about one number, and we have appointed Mister — the Board of Directors appointed have Mr. Shantanu Mukherjee who was the ex-Managing Director of State Bank, one of the subsidiaries of State Bank of India, as the Independent Director. He came with a rich experience of more 30-plus years. And this is one significant step which we have taken and he will be forming part of the Governance Board for the company. That is a very significant step we have taken.

Damayanti Kerai — HSBC — Analyst

Okay, okay, sir, yeah.

Santhanam Subramanian — Chief Financial Officer

Yeah, please.

Damayanti Kerai — HSBC — Analyst

So this, like we have plus one Independent Director now, and you think like this is a major improvement.

Santhanam Subramanian — Chief Financial Officer

No, I think now the number of Independent Directors in our company is 5 out of 10.

Damayanti Kerai — HSBC — Analyst

So almost 50% are now independent.

Santhanam Subramanian — Chief Financial Officer

Yeah, 50% of — yeah is the Independent Directorate. And we have four Executive Directors. And one — I mean, I’m sorry, three Executive Directors and two Promoter Directors.

Damayanti Kerai — HSBC — Analyst

Okay, okay. Thank you.

Operator

Thank you. The next question is from Raunak. Raunak please unmute.

Raunak Thakur — ICICI — Analyst

Yeah, hello. Yeah. Hi, and good morning. I just want to understand, recently, you got a US FDA approval for linaclotide. So can you just throw some light on that? What’s the expected revenue you are envisaging for the next few quarters?

Santhanam Subramanian — Chief Financial Officer

Not an injectable product? Which product are you referring to, Raunak.

Satakarni Makkapati — CEO of Aurobindo Biosimilars, Vaccines and Peptides businesses.

I can take that. I can take that.

Santhanam Subramanian — Chief Financial Officer

Yeah, please go ahead.

Satakarni Makkapati — CEO of Aurobindo Biosimilars, Vaccines and Peptides businesses.

Yeah, Subu, shall I go ahead?

Santhanam Subramanian — Chief Financial Officer

Yeah, please.

Satakarni Makkapati — CEO of Aurobindo Biosimilars, Vaccines and Peptides businesses.

Okay, so we got a recent approval. But the issue there is, we have also got settlement on that, and we have not — we have to launched it now. I think you’re talking about. linaclotide, linaclotide capsule. Yeah, that we can’t do the — I mean we can’t commercialize it, because we have a settlement on it. It’s some times beyond the immediate future.

Raunak Thakur — ICICI — Analyst

Okay, thank you.

Operator

Thank you. The next question is from Jayakumar [Phonetic].

Jayakumar — — Analyst

Hi, good morning. Can you hear me?

Santhanam Subramanian — Chief Financial Officer

Yeah, very much. Morning Jayakumar.

Jayakumar — — Analyst

Yeah, good morning. In line with shareholder value and everything else. I think governance you’ve addressed. But one of the things that for a company that’s trading at 5, 5.5 times EV, EBITDA and almost single digit PE multiples, it’s almost logical when you have net cash you look at buyback as a way of rewarding shareholders and reducing the undervaluation if you will, especially in light — in comparison with other peer group, pharma players. Any steps towards that because I noticed certain changes in articles that you’ve talked about?

Anything to do with this that can you can throw some light on?

Santhanam Subramanian — Chief Financial Officer

Yeah. I will address it in two parts. The first part is, this question came up in the last quarter itself. And we have addressed with buyback. This will be addressed in the May Board meeting. If at all, it will be addressed in the May Board meeting, because we have taken a very huge task of accelerating the Penicillin G project which is one of the future potential for the company and that involves quite a significant money to the tune of around $250 million.

So we said we’d be addressing that. And in terms of the second part of the question, which is that article yesterday, you are right, to some extent, because the articles which you are having is a pretty worldwide and it is not in full compliance with The Companies Act. So what we have done is we have reviewed the entire classes and we have replaced wherever it is not in with congruence with Table F Schedule I of The Companies Act. We replaced it, which involves the buyback provisions also, apart from the other provisions.

Jayakumar — — Analyst

Could you be more specific? I have not understood the–

Santhanam Subramanian — Chief Financial Officer

Yeah, because our existing Articles of Association will not permit to — for the Board directly to approve any buyback if it is less than 10% of the net worth, right? We need to go to shareholders, which means another 50 days. So what we have done is first, we want to amend the articles, in-line with The Company’s Act Table 11 of Schedule I. That is what we have done, which means the Board will be at liberty as and when they decide to move ahead with the buyback, it can be implemented quite fast.

Jayakumar — — Analyst

Understood. I have in fact, a second question which is, I don’t know if I missed this thing and it has been addressed earlier, which is the pricing pressures in. The US and logistics costs. I understand from other thing that the logistics cost in general have come down, which has been a cause of some margin compression in earlier quarters. Is that the case with us as well in terms of — and in terms of pricing pressures, have they eased significantly?

Swami Iyer — Chief Executive Officer, North America

Yeah, so as far as the logistics cost is concerned, Subu can collaborate this, because India’s sends the product to us. We have seen better pricing in terms of logistics. That’s number one. As far as the US pricing on our products is concerned, I had mentioned earlier that we see some kind of stability. There will always be some price changes. There’ll be some downs, and there will be ups. In the past few quarters, it has been mostly down, So now we see fairly stable prices. That’s what I would like to say.

Santhanam Subramanian — Chief Financial Officer

Yeah, thanks. In terms of freight cost which Swami has mentioned, we are seeing a significant price — freight cost-reduction between last quarter — I mean, Q2 as well as Q3. Overall, there has been improved freight cost — I mean reduced freight cost between last quarter to this quarter — I’m sorry Q1 to Q2, as well as Q2 to Q3. Does it answer your query?

Jayakumar — — Analyst

Yeah. Thank you. Thank you very much. And all the best.

Santhanam Subramanian — Chief Financial Officer

Thank you.

Operator

Thank you. The next question is from Aishwarya.

Santhanam Subramanian — Chief Financial Officer

Aishwarya, you have to unmute yourself. Yeah, you can speak now. Some mike issues. The next question is from Neelam. We will next as Nitin Agarwal

Nitin Agarwal — DAM Capital — Analyst

Thanks for taking my questions, sir. Sir, two, three questions. One is on the US business, have you started to see a pickup in new business orders again, given the fact there has been a recent round of FDA regulatory action on certain companies. And that has led to an increase in NBOs [Phonetic] in the past. Have you seen the trend happening all over again.

Santhanam Subramanian — Chief Financial Officer

Swami?

Swami Iyer — Chief Executive Officer, North America

Sorry about that. Okay, so we have seen better demand, better volume growth in this quarter and we believe that this will sustain. This could be various factors. One was seasonal. Now there could be — some of that are competitors, some are company not being able to supply. Whatever. We have seen definitely better growth. And we are confident that this will sustain going forward.

Nitin Agarwal — DAM Capital — Analyst

And Swami, just on that. Through the last, maybe three or four months, as we we’ve been through for example to October to January and now, have you seen this trend improving or it’s been sort of steady? How would you qualitatively assess that?

Swami Iyer — Chief Executive Officer, North America

Sorry. You are referring what?

Nitin Agarwal — DAM Capital — Analyst

I mean the demand trend, the volume growth trend has been improving through the months over the last three, four months. Is it getting better?

Swami Iyer — Chief Executive Officer, North America

I would believe so. See part of this could be seasonal, but I think on an overall basis, even other than the antibiotics and seasonal product, we have seen some amount of surge. Yeah.

Nitin Agarwal — DAM Capital — Analyst

And so, secondly, on the US business, apart from the base, now in terms of the new product launches, what should — can we look-forward to? How many launches and how many potential launches that in your assessment could be more than $20 million plus for the year.

Swami Iyer — Chief Executive Officer, North America

So last — in the last quarterly earnings call, we had mentioned that we are looking at some new ANDAs being commercialized over the next 12 months. I think we talked about 40 ANDAs being commercialized. We still hold that view. In fact, we have got some approvals. And we are in the process of launching in the current quarter.

In terms of topline, I would say that conservatively we would expect about $50 million on an annual basis, maybe little higher. But that’s what we would expect. Obviously it’s not going to happen next quarter, next month. It’s going to be over a period of time. I’m talking about the next 12 months we would see some kind of increase.

Nitin Agarwal — DAM Capital — Analyst

Okay. And if I can, on that. So on the injectable business, we’ve seen a pretty strong recovery. I think this was probably one of the better quarters we’ve had in the injectable business in some time. How should we look at this business now on a next few quarter basis?

Santhanam Subramanian — Chief Financial Officer

We are quite positive Nitin in terms of the way we have weathered the storm and first, two quarters were not great, But third quarter, we have seen stable pricing and increased volumes. And with the new products — I’m sorry, like we are launching almost five new products every quarter. And some of the new products and sustainable pricing and volume recovery, we feel like going forward into quarter four and quarter one of next year, we do feel that it would be a double-digit growth quarter-on-quarter.

That’s what we see and we already launched Amphotericin B in January and we do have some interesting launches coming forward.

Nitin Agarwal — DAM Capital — Analyst

Sorry, just to reconfirm, you said, we were about $74 million this quarter and you’re talking about Q-o-Q growth in Q4 and Q1 on this number?

Santhanam Subramanian — Chief Financial Officer

That’s right.

Swami Iyer — Chief Executive Officer, North America

Thanks. That’s very helpful. And lastly on the US, in terms of the non-orals presentations, non-orals, non-injectables, you had some filings for inhalers transferables and some of the other new presentation format. Any of those do you see getting commercialized this year? When you say this year, by March no, we don’t see that happening.

Nitin Agarwal — DAM Capital — Analyst

No, no, March ’24, I mean FY24, I am sorry.

Swami Iyer — Chief Executive Officer, North America

So I think that would be aggressive timeframe. It could possibly little later. But we have got a oral solution now from one of the facilities. So obviously, we are looking-forward to other introductions. This could take a while.

Nitin Agarwal — DAM Capital — Analyst

Let me ask you one last one. Subu, on the Pen G project, if you can give us some sense on the project size, the commissioning time and what can it really entail in terms of possible revenues at the current levels of Pen G prices?

Santhanam Subramanian — Chief Financial Officer

Regarding the Pen G project, the size of the project we are working is around the $250 million, plus or minus 5% contingencies. And so far, we have spent around $89 million. The D date for the Pen G project is 1 April ’24. While the D date is 1 April ’24 it is already our endeavor to advance it. That’s what we’re working on. As on date, the installation is expected to be over by September-October of this year. And we will be doing the pilot batches between November-December. And I mean, till the time we succeed we will do it, but in any case, it will not be later than March. And if the pilot batches succeeded in the first iteration itself it can be advanced also.

In terms of the execution et cetera, a lot of people working and the things are going pretty fast. And we are looking-forward to this project really speaking. And I think I’m sure government being the major sponsor for the project by way of the some P&A incentive based system they are also looking at it. And everyone of us are looking forward for that.

Nitin Agarwal — DAM Capital — Analyst

Okay, sir, Thank you very much.

Operator

Thank you. The next question is from Vinod [Phonetic].

Unidentified Participant — — Analyst

Hi, good morning to all of you. Subu, could you please explain a bit on this sale of non-antibiotic API business to the subsidiary? What’s the rationale? What’s the thought process?

Santhanam Subramanian — Chief Financial Officer

So the thought process is API business today, we are having around, Including antibiotic and non-antibiotic et cetera, we are having around 10 units. And what we are planning to do is bring all the regulatory units under one — all regulatory API units under one. Wherever that’s a major contribution to the regulatory in nature we’ll try to bring it under one umbrella. This is to have ensured that we mitigate the risk factors like regulatory risk, margin risk, everything we want to bring it under — and give a massive focus into the overall value creation for the stakeholders. That is the whole idea.

And this also will help in terms of improving the operational efficiency. And today, if you’re see the regulatory units what we have been majorly around that, more than 75% is supplying internally and about 20% external. So by creating under one number with a new management, can we able to focus more on the external also? Like that we are looking to all possible options by which we can create value for the channel. That is the overall idea.

And at the end of the day, if can have a strategic tie-up et cetera we can always look into that. Like what we have been trying to do for UGF [Phonetic] we will try to bring under a professional management. All these things we are trying to build.

Unidentified Participant — — Analyst

Does this have any tax implication?

Santhanam Subramanian — Chief Financial Officer

So there is no tax implication. It is a 100% subsidiary. Any 100% subsidiary it is exempted under the — I mean, no transac [Phonetic], no tax on the transac over the assets. It is exempted as per the Income Tax Law, not an issue.

Unidentified Participant — — Analyst

Understood. Maybe last question on generic revlimid, now that the market has formed, lot of your competitors have entered. And you also have a settlement. Would you be able to give some timeline about your launch or would it be FY24 or FY25?

Swami Iyer — Chief Executive Officer, North America

It’s Q3 FY24.

Unidentified Participant — — Analyst

Great, thank you. Thank you very much.

Operator

Thank you. The next question is from Tushar.

Santhanam Subramanian — Chief Financial Officer

Tushar?

Satakarni Makkapati — CEO of Aurobindo Biosimilars, Vaccines and Peptides businesses.

Looks like he’s not there. Can we move to the next? The next question is from Aishwarya.

Aishwarya — — Analyst

Yeah. Can you hear me?

Santhanam Subramanian — Chief Financial Officer

Yeah, Aishwarya.

Aishwarya — — Analyst

Yeah, thank you very much. So I have two, three questions. One is that, how we should see the compliance, especially when you guided that it should be increase in the revenue number by $50 million in the next 12 months. So which are the key two, three plants which are associated with this revenue growth, and how’s the compliance level over there, In terms of FDA inspection and any 4X piece [Phonetic] resolution?

Santhanam Subramanian — Chief Financial Officer

Aishwarya, this question is two parts if I’m right no. One is relating to the increase, which Swami can address. In terms of the compliance, I think today if you really see the formulation, all the units are under VI. And apart from this couple of units. I mean one unit has been inspected recently, or two units API Unit I and III. That had been expected. And that is also — we are informed to the exchange that CPR noticed. So as on date in the Formulation business we don’t have any issue in terms of the regulatory compliance.

In terms of capacity that is enough capacity to argument the supplies et cetera. In terms of the growth percentage Swami can explain.

Swami Iyer — Chief Executive Officer, North America

In terms of — with regard to what guidance we are saying about 40 products, that’s likely to come over the next 12 months, we have factored in any compliance issue that could be there, as that’s known as on-date. If an API plant has a problem we consider those factors while deciding what are these 40 odd products that we are going to commercialize.

So we believe at this point of time this is realistic. Going forward, obviously if there is any inspection we need to see the outcome of it. But to — we have factored in this compliance matter.

Aishwarya — — Analyst

Sure, thank you sir. And one more question from my side is how we should see the free cash flow generation going forward in next two years? Where we need to factor in how much you spend on R&D, how much is capex?

Santhanam Subramanian — Chief Financial Officer

So with — Aishwarya to put it, with this maximum. We have achieved INR415 crores by quarter is the maximum R&D spend we have done, in any quarter, to the best of my memory. Even if you continue with that I don’t think we will be continuing, this probably it maybe slightly lower. Right. And with the Pen G project and some of the project going to take place next year, this will — we will able to achieve good free cash flow coming from the project. Even the biosimilar also as can be assessed, we have already said in the past meeting, earnings calls, et cetera. We have filed two product, one more product also we are going to file it, et cetera.

This is expected to generate cash flows starting FY25 onwards. So I can clearly see FY25 Pen G project will generate cash, and our biosimilars will generate cash, plus various projects are in the process of commissioning et cetera. If one or two of them have been successfully commissioned apart from what I mentioned that also will generate the cash flow.

I think going-forward, I can see very clearly cash flow generation will be very good, starting FY25 onwards.

Aishwarya — — Analyst

Sure, and how about ’24, sir.

Santhanam Subramanian — Chief Financial Officer

’24 also, I think we should be able to generate the cash flow because apart from the existing — we are not undertaking any new product, no new project except the one which we have announced recently, that biosimilar one, CMO facility, we are thinking of putting it. Other than that. I don’t see any new major Greenfield projects are being sought out. If any deviations et cetera, The we will be informing the normally earnings.

Aishwarya — — Analyst

Sure, sir.

Santhanam Subramanian — Chief Financial Officer

And most of the projects are either, 40%, 50 percent completed, like biosimilars’ capex is over. It’s already the clinical trial, which is forming part of the R&D costs, which have been factored as part of the B&O. Then if you really see the US capex, capex, most of the projects have been completed and they’re waiting for the exhibit batches and the final approval. You take China plant, China plant insulation is over and we are doing, they exhibit batches, like that’s so and so.

So we don’t see a major thrust on the cash flow, on account of the project and business is also doing well, expect to be a good cash flow.

Aishwarya — — Analyst

And sir, like we know that the U.S. Business is turning a bit more difficult because of the competition. So with that into consideration, we have less control on the revenue side. Anyway we are doing extremely well despite that. We don’t see very meaningful growth coming on the top line. So the levers left out, how to control the cost side or the capex side. So do you see any levers which are visible inside ’24, ’25 which have not been discussed so far.

Satakarni Makkapati — CEO of Aurobindo Biosimilars, Vaccines and Peptides businesses.

Yes actually, if you really see the annual report dated 31 March ’22, we have identified the five levers. And one is the biosimilars, and the second is the API and Pen G plant. Third is the API business, and the fourth is the Eugia, which the earnings call in the last time it was — even though we have given a clear roadmap for the Eugia business. And fifth is like India business. India business because of the other priorities is going — I mean, not taken out, but other things have taken out when going in an accelerated pace.

Aishwarya — — Analyst

I was talking more on the, I mean absolute numbers in terms of cost side, or the capex side, which probably will be —

Satakarni Makkapati — CEO of Aurobindo Biosimilars, Vaccines and Peptides businesses.

One of the significant — you are right. One of the significant steps which we have taken is carving out the API business to achieve the operating efficiency to improve the capacity utilization and service the market. We are already carving out, and we are in the process of doing. And this will take in effect from 1 April. We are working on that. And that also will contribute. We can see an improved performance from the API business, which means, which is the main cost base for the entire company. You can see an improved performance.

On the antibiotics side, Pen G is coming, which is another major cost saver, because we have been buying all the related KSM [Phonetic] and the intermediates, et cetera. So these are all the steps being taken by the company.

Aishwarya — — Analyst

Sure sir. I’ll connect to you offline. Thank you very much for these details.

Satakarni Makkapati — CEO of Aurobindo Biosimilars, Vaccines and Peptides businesses.

Yeah.

Operator

Thank you. The next question is from Nikhil.

Nikhil — — Analyst

Yeah, hi. I’m audible?

Santhanam Subramanian — Chief Financial Officer

Yes Nikhil, please go ahead.

Nikhil — — Analyst

Yeah, sure. Sir, I wanted to first check on the R&D side. Now there’s a pretty sharp jump on a quarter-on-quarter basis. I understand that there are a few clinical trials that are ongoing. But I also wanted to check, is there some change on the R&D front, strategy front that has happened in the last quarter or so? Is it that the U.S. Outlook seems a bit improved and because of that there is a step jump in the R&D spend, ex of biosimilars as well.

Santhanam Subramanian — Chief Financial Officer

Not — I think a key contributor to the R&D spend this quarter is the biosimilar. Compared to INR75 crores expenditure of last quarter, this is INR180 crores this quarter. We have explained in the last quarter itself, our R&D spend for the year will be somewhere within 6% to 6.5%. The first half has now taken place and we’ll be focusing — we’ll be entering more costs because of the timing of the clinical trial, et cetera also required, et cetera. And because of that, these two quarters there will be a good R&D spend that will happen, which has been already informed with the earnings call, last earnings call.

Nikhil — — Analyst

Okay, sir, this quarter the R&D to sales at around 6.5%, do you see a gradual moderation in this number in the coming quarters or year?

Santhanam Subramanian — Chief Financial Officer

Ideally we should take around 6% to 6.25%. 6.5% will be a outer limit, but I am talking from an absolute amount. It is a function of the turnover also. So 6% to 6.25% on the existing turnover, I mean, achieved turnover is the norm which we are looking at.

Nikhil — — Analyst

Okay. So if the revenue goes up, this number will come down, because you are starting —

Santhanam Subramanian — Chief Financial Officer

Yeah, because we are talking about the absolute number only.

Nikhil — — Analyst

Current, okay, understood. And also Subu sir, I just wanted to revisit the CWIP number. I think at around September this was INR3,200 odd crore. So what is the capital work in progress today?

Santhanam Subramanian — Chief Financial Officer

So the capital work in progress today is something like — it’s around INR4,000 crores. It is around — the exact amount if you really see, it is INR4,200 crores and even the intangible is around INR800 crores, right. The major capex is the China plant, which more or less it’s completed INR600 crores, as I told you the installation is over. [Indecipherable] type we have already incurred the cost. It is a percent of the clinical trials only which I explained, right. And we are putting one Eugia manufacturing plant in Vizag.

So that expenditure is still going on. Like that, some of the project, either it has been installation level which is more or less 90% over, or it may be in the process of 40%, 50% is over. As I said, these are all expected to start commissioning by 31/3/24 onwards.

Nikhil — — Analyst

Okay, so it will take us still a year for the expensing out of this CWIP to happen.

Santhanam Subramanian — Chief Financial Officer

No, this will get capitalized on or before — I mean at least some of them will get capitalized on or before 31 March ’24.

Nikhil — — Analyst

Okay, understood. And also the — in the CWIP number, how much is the pre-operating expenses that has been capitalized, whether R&D or whether other plant expenses?

Santhanam Subramanian — Chief Financial Officer

It is getting — I will get that data separately Nikhil. I don’t have it right now with me. I have the overall number only.

Nikhil — — Analyst

But is it a sizable number, because I mean that directly impacted–

Santhanam Subramanian — Chief Financial Officer

All of this is sizable. Any project, if I’m talking INR4,200 crores is the tangible you can take something like 10% will be the pre-operating including all, and that is a guess, but I will get the exact number later.

Nikhil — — Analyst

Okay, understood. Also sir, I mean revisiting the PLI project as well. So $90 dollars incurred out of budgeted $250 million. The timeline seems pretty tight. I mean you have only five, six months to incur the remainder capex. So I wanted to understand, is the entire $250 million needs to be spent to commence the project or you can commence the project partly as well, maybe I mean–

Santhanam Subramanian — Chief Financial Officer

No, I think Nikhil, what we need to look at it is, in the case of the projects, it is the — when we said $90 million is the cash spend, it doesn’t mean we are going to start some of the work now. We have issued the purchase orders long time back. So all of the projects will have a gestation time in terms of completing the work and then installation. And the payments will be successful implementation or successful dispatch of the material. So most of the material will start coming between April to June, and it will get, its commission — I mean installed, not — commission is not the right word, installed between July to September.

So that’s the way you have to look at it. But as and when they start dispatching we need to make the payment or based on the successful assembly that we pay, something like that, you got it?

Nikhil — — Analyst

So civil works have been done?

Santhanam Subramanian — Chief Financial Officer

Civil works and more or less, I would say around 75%, 80% is already completed. Even the mechanical and the electrical is also — purchase orders have been issued more than INR1,500 crores already. I think in the last earnings call itself, if I’m right, we have issued more than INR1,500 crores purchase order. Probably by this time they would have issued the balance also. It could be another INR200 crores, INR300 crores.

Nikhil — — Analyst

Right. And then also finally on this one, 15,000 tons was the planned capacity. And there was a captive and a merchant share. Can you also again share those numbers please?

Santhanam Subramanian — Chief Financial Officer

No, no, no. 15,000 tons is the total Pen G capacity. And as we said in some of the previous calls, our captive consumption equivalent Pen G is something like 6,000, around 7,000 tons, right. That is the thing and the balance will be for on — it will be for external sales.

Nikhil — — Analyst

Okay, and sir what is the pricing scenario today? I mean when the project was envisaged versus now, how has the prices moved?

Santhanam Subramanian — Chief Financial Officer

I don’t think, today the prices are very high because of various reasons, but we will not guess anything now because the project is at least one year away, and I don’t like to guess any number right now.

Nikhil — — Analyst

But sir, with China opening up. I mean, my limited understanding of what’s happening in other commodities, I think normalization can happen. So do you think that — or would you mind sharing some ballpark sensitivities around — if pricing goes by this much percentage, you will still be making good economic value. Can you share that?

Santhanam Subramanian — Chief Financial Officer

Yeah. We will make economic value. That much I can say. But I will not like — even with all your contacts and the interaction with the international you have limited. So we don’t know that much of interaction with anybody. But I can say one thing, even if the price goes to pre-COVID levels, et cetera also, we will be well within the selling price. Our cost will be well within the selling price.

Aishwarya — — Analyst

Okay, understood. And sir, one final question on the biosimilars front. Can you share some quantitative guidance on what absolute sales you are targeting for biosimilars in two years, three years time frame? And also in the US how many field force tentative from the Spectrum acquisition, and would that be leveraged to commercialize the initial biosimilars. So would there be any incremental spend required initially to commercialize the Biosimilars, especially in the US?

Santhanam Subramanian — Chief Financial Officer

Yeah, Satakarni?

Satakarni Makkapati — CEO of Aurobindo Biosimilars, Vaccines and Peptides businesses.

Yeah, so I will answer your question in two parts, Nikhil. With respect to biosimilars, for the next two years, as you know that we have two products filed right now with EMEA. We have filed a monoclonal antibody in oncology with MHRA. With the antibody and oncology segment, we have completed the necessary regulatory procedure with MHRA, with one major pending action, which is the GMP inspection.

The required on-site inspection is hindered by the availability of inspectors at this time. And our regulatory team is continuing to work with MHRA on this subject. At this time, the agency and we have agreed to take a clock stop until April, and are hoping to have GMP inspection announced within this time frame. So once that happens, then I probably think we’ll have at least one quarter of sales in this year, provided I will be able to obtain an approval for this antibody by Q2 of the next fiscal.

With the biosimilars filed with the European Medicines Agency, I have provided an extensive guidance in the last earnings call, but owing to the COVID-19 workload and paucity of inspectors, we are struck at day 180 of the clock. And on the advice of European Medicines Agency, we have taken a clock stop until the June of 2023. Now the agency has mentioned that the situation will change as and when inspectors become available to travel and audit us.

At this point I’m pleased to state that auditors have indicated, end March are the dates for onsite GMP inspection. So in the last week of March, we are having the GMP inspection announced. So with this development, we are reasonably confident that the post-audit regulatory process will conclude at least for one of these products, and we shall be able to initiate the commercial activities in EMEA or the European region for at least one product before the end of next fiscal. And for the second product probably in the first quarter or the second quarter of the next fiscal.

So I am hoping for a continuing engagement with the agency and taking the S3 regulatory formalities at this point of time. Additionally, we have also stated filing with Health Canada. And Health Canada also had acknowledged the receipt of our file and started the review procedure. We had an audit announced with Health Canada in the first week of May. So I believe if things go well, we would also have the commercial sales begin either in Q4 of the next fiscal or at least Q1 of the following fiscal, which is FY25 in Canada as well.

So I think overall, we are looking at least two biosimilars to be commercialized in EMEA, Health Canada and MHRA. And importantly as you know that we have concluded — we are concluding the large metastatic cancer trail in 690 subjects. We will start the filing process of this monoclonal antibody in India and emerging markets in July of the next fiscal. And by September we will file it with European Medicines Agency and by December it is our intent to file with the US FDA.

Now I’m optimistic that in ’25 we will have this product approved in EMEA and also hopefully if things go well, we’ll also be approved with the FDA. So I see ’25 as an inception point with this antibody kicking in, in the commercial markets, both in EMEA and FDA. I expect at least one quarter of sales in the antibody in India to start with in the next fiscal, with EMEA being ’24, ’25. So that’s the guidance on biosimilars, which is part one of your question.

The second one is about the spectrum or the commercial field force that we have in the U.S., with Acrotech Pharma. We have a presence in oncology segment. We are going to leverage the commercial front sales team or the team that we have with Acrotech, who will also be the front end for biosimilars in U.S. We expect the first biosimilars in the U.S. to be approved in 2025 and we will leverage on the field force that we have with Acrotech Biopharma to take this product into the market.

We are also planning to bring an immunology biosimilars by ’25, ’26 in the US which his used in dermatology indication. Again, as we see if you have followed Acrotech Biopharma, they’re investing in dermatology products and brands. So essentially, the idea is that Acrotech Biopharma will position our biosimilars brands in the US market.

I’ll stop here and ask if I have answered your query or if there is any further follow-up to this?

Nikhil — — Analyst

Yes, Dr. Satakarni, I think it’s very clear and I think it’s very helpful and all the best for this initiative for the company.

Satakarni Makkapati — CEO of Aurobindo Biosimilars, Vaccines and Peptides businesses.

Thanks Nikhil.

Operator

Thank you. The next question is from Tarang.

Nikhil — — Analyst

Hi! Good morning. Am I audible?

Satakarni Makkapati — CEO of Aurobindo Biosimilars, Vaccines and Peptides businesses.

Yes, Tarang. Okay. Three questions from me. First, one is on Europe. I think it’s good to see that you have come to a EUR200 million quarterly run rate. The last time this happened if I recall was in March ’20. But what I understand was there’s some bunch-up of sales that happened then. So from here on, is this a base that we can expect you to maintain? If you could give us some sense on what’s happening in Europe, and how should we look at it going forward from here.

Santhanam Subramanian — Chief Financial Officer

Yes, so we had a good partner in Europe in the third quarter, and you have seen that actually in a quarter two we were at a EUR190 million. And this quarter we have exceeded EUR200 million. But quarter three is always the strongest for us. But on a year-on-year we have a 7% growth and even on a quarter-on-quarter as I said, there is a seasonality, 2% growth. But considering the discontinued business, then the quarter-on-quarter was a 5% growth. So I guess that about EUR185 million to EUR190 million is the base line. And actually based on the seasonality and some of the opportunities which come up, we may grow at a middle level of a single digit growth.

Tarang Agarwal — Old Bridge Capital — Analyst

Okay. Thanks, that’s helpful. The second is [Indecipherable]. When should we see the Vizag plant revenues starting in? My sense is you will commercialize it and the exhibit batches approval from the regulators. If you could just give us an updated timeline on this. And second, you know last quarter at least the commentary that we received was that especially in injectables there was heightened competitive intensity, which are showing up in your numbers and also in the numbers of your peers. And that seems to, at least from a number basis for Eugia that seems to have reduced. So if you could just give us some sense on what’s happening in the injectables market space?

Yugandhar Puvvala — Chief Executive Officer

So the first thing is on the Vizag plant. We will be starting it with batches from this month onwards. And we already requested European authorities to inspect the plant in November for this calendar year, which is November ’23. And we expect that in the best case scenario, it might be a quarter four of FY24 commercialization. On worst case it might be quarter one. And we are also going to file some of the shortest products of US to trigger an early audit for the plant. That’s on the Vizag plant.

So you can take it as FY25 is the commercialization for Vizag plant. And in this entire fiscal year we’ll go into verifying the batches, inspections and all that stuff. On the US front, in terms of what we have seen, first two quarters, there was a significant pricing pressure for a variety of reasons, but quarter three and quarter four how we are observing is, the pricing has stabilized. The demand, the volumes are improving significantly. And also, I think probably regulatory actions on some of the other competitors is giving some minor trickling business at this point of time. But we will see, like how it goes. But what I’m very confident of and very hopeful of is my team can generate double digit growth going forward.

Tarang Agarwal — Old Bridge Capital — Analyst

Okay. And how much was nine months FY23 revenues for Eugia and what was the similar number for nine months FY22?

Yugandhar Puvvala — Chief Executive Officer

It is flat, because we don’t give a separate listing in our panel, because it’s on a pro forma level. But as you can see it is just flat, FY22, to FY23.

Tarang Agarwal — Old Bridge Capital — Analyst

Okay. That’s helpful, thank you. The next is on biosimilars. Dr. Satakarni you spoke about doing some filings in Canada. Is it one of the products that you’ve already filed in Europe on MHRA or is it a different product?

Satakarni Makkapati — CEO of Aurobindo Biosimilars, Vaccines and Peptides businesses.

Essentially the same product that we have filed in Europe and MHRA. One of them is filed in Health Canada, and we are planning to file the second one also with Health Canada.

Tarang Agarwal — Old Bridge Capital — Analyst

Okay, that’s helpful. And second, I mean I noticed that in Q2 of FY23 there is a biosimilar subsidiary that was incorporated. If you could give us some sense, what was the purpose? And second, some update on what’s happening on vaccine? Specifically, you did get some regulatory partnering in your PCV vaccine this quarter.

Satakarni Makkapati — CEO of Aurobindo Biosimilars, Vaccines and Peptides businesses.

Yeah Tarang. So on the vaccine trend, we are encouraged by the fact that the subject Expert Committee Panel operating under the ages of CDSCO or DCGI has reviewed our Phase III pediatric data for the Pneumococcal 15-valenta vaccine. The data suggest that 15-valenta Pneumococcal vaccine would be anticipated to help protect again the stereotypes covered by the Pfizer’s PREVNAR 13 and also expand coverage to include two additional Pneumococcal pseudo types causing potentially a serious disease in infant.

Thereby, how do we view at this SEC recommendation? The SEC recommendation should be viewed in the sense that they have granted a recommendation for manufacturing and marketing of the PCV 15 vaccine to our JV company. So at this stage, we are going through the regulatory process of obtaining a manufacturing license, which is a normal course of regulatory process. I am optimistic that this procedure will conclude in the next few weeks, probably around six to eight weeks’ time.

Since the 15 stereotypes included in our vaccine are responsible for a good majority of global Pneumococcal disease cases, I’m excited by the potential, the broader coverage we can offer with the PCV 15 vaccine. I plan to commercialize it two quarters from now, provided we will receive the manufacturing license in April, May. Then two quarters from now we would commercialize this PCV vaccine. So that’s part two of your question on the vaccine spend.

What was your past one of the question Tarang?

Tarang Agarwal — Old Bridge Capital — Analyst

Is there a biosimilar subsidy that’s been incorporated?

Satakarni Makkapati — CEO of Aurobindo Biosimilars, Vaccines and Peptides businesses.

Okay. So there is this subsidiary called Peramine [Phonetic] Biologics, which you are talking about, right?

Tarang Agarwal — Old Bridge Capital — Analyst

Yes.

Satakarni Makkapati — CEO of Aurobindo Biosimilars, Vaccines and Peptides businesses.

That is incorporated, and we talked about it in the earnings call, I think the last quarter or the previous quarter. So the idea is to expand on the capacities to support any CMO opportunities in biologic space. At the same time, with our oncology biosimilar coming in, we would like to scale it up to an extent where we become extremely cost competitive in these low and middle income countries. So that’s the idea.

Right now, we are still discussing on how to shape up this project in the next fiscal year. So I’ll provide guidance as things evolve, but the idea is to become a CMO and also use the initial capacity to make it more cost effective for our biosimilars to go into low and middle income countries. That’s the vision behind this.

Tarang Agarwal — Old Bridge Capital — Analyst

Got it. That’s very helpful. Thank you.

Operator

Thank you. The next question is from Sriram Rathi [Phonetic]. Seems like he’s not here. The next question is from Abdul Kalim [Phonetic].

Abdul Kalim — — Analyst

Hello. Hello.

Satakarni Makkapati — CEO of Aurobindo Biosimilars, Vaccines and Peptides businesses.

You are audible.

Abdul Kalim — — Analyst

Hello, sir. Sir, I just wanted to get a clarification on this one. You told that there is some process that is going on for making the buybacks easier for this one. Technically I did not understand what exactly that was, but I just wanted to know whether the management is seriously thinking about to buyback, at least in the near future and what would be the timeline for that?

Santhanam Subramanian — Chief Financial Officer

See, we are not averse to buyback, okay. So at the same time the buyback management — it is a decision of the Board keeping in mind and Board will decide, keeping in mind various financial commitments on various projects, and another thing, Board will take the decision at the appropriate time.

Abdul Kalim — — Analyst

Okay, so you can’t give any timeline for that.

Satakarni Makkapati — CEO of Aurobindo Biosimilars, Vaccines and Peptides businesses.

Management cannot give a timeline for that.

Abdul Kalim — — Analyst

Okay. But there is a thought process that is going on there.

Satakarni Makkapati — CEO of Aurobindo Biosimilars, Vaccines and Peptides businesses.

There is a thought process going on. That’s the reason why we have being trying to make — commend the articles and other things.

Abdul Kalim — — Analyst

Okay, sir another — last thing sir. Because it is repeatedly, it will be coming in the social media, so that if the clarification comes from your side, it will be helpful for the shareholder. What is the formal relation between the Aurobindo Pharma and Aurobindo Realty if you can just enlighten on that concept?

Satakarni Makkapati — CEO of Aurobindo Biosimilars, Vaccines and Peptides businesses.

Aurobindo Pharma and Aurobindo Realty are totally independent. They are no way connected, except both are having a common promoter.

Abdul Kalim — — Analyst

Okay, so there is no formal connection between them.

Satakarni Makkapati — CEO of Aurobindo Biosimilars, Vaccines and Peptides businesses.

No connection between Aurobindo Realty and Aurobindo Pharma. The only — if at all there is a small connectivity is the Galaxy building where we are based, wherein that is held by a company called Raidurgam Developers, where Aurobindo Pharma is having a 40 stake and the other promoter group is having 60%. But Aurobindo Reality is no way directly connected.

Abdul Kalim — — Analyst

That is very helpful, sir. Thank you.

Satakarni Makkapati — CEO of Aurobindo Biosimilars, Vaccines and Peptides businesses.

Okay.

Operator

So Thank you. We will take the last question as Shyam Srinivasan.

Shyam Srinivasan — Goldman Sachs — Analyst

Yeah, hi. Good morning, and thank you for taking my question. Subu sir just on margins, just going back, I know R&D has gone up. But historically we used to be a 20% EBITDA margin company. So just want your thoughts on when we can look forward to those kind of margins. We have now started growing and it’s looking from the commentary on this call, it seems to suggest that growth can be sustained. So just want some of the levers of say, reaching historical margins. Is there any timeline or any specific product mix that you would like to highlight that will help us reach there, or is just ongoing growth.

Santhanam Subramanian — Chief Financial Officer

One is ongoing growth and second is one of the key thing which the management is taking, embarking on. The action plan is to increase the capacity utilization. That is also one of the reason which you have said. We will bring more focus on the API. That’s the reason why we are carving out into a separate subsidiary company. That 20% if you ask me, while we may not able to give you a guidance, but certainly with the Pen G project being successful, we might be able to reach that is my feeling at this point of time.

Shyam Srinivasan — Goldman Sachs — Analyst

So the Pen G project will start 1 April right, 1 April 2024.

Santhanam Subramanian — Chief Financial Officer

First April 2024. That is the thing because it will add some more topline, as well as it can reduce some cost, like that. But this is — I mean, we don’t know to guess at this point of time. Nearer the date, probably in the November earnings call we may able to get clarity on this aspect.

Shyam Srinivasan — Goldman Sachs — Analyst

Sir, Just following up on this. So from a cost perspective, you talked about logistic cost. You also talked about input cost inflation. Those you are now having a better visibility, and the only thing that we —

Santhanam Subramanian — Chief Financial Officer

Yeah, we have been tracking all of the freight cost, et cetera We are trying to optimize all the cost from overall leveraging the capacity. The overall operational leverage we are doing, everything. Whatever possible we want to do, we have been doing that, and at the end of the day, all are a function of the top line, in which there is some improvement started taking place, which Swami has clearly explain with the new products coming, what is the new launches he’s planning everything, Swami has clearly explained. With that hopefully, we will also move towards that goal of 20%

Shyam Srinivasan — Goldman Sachs — Analyst

Got it, sir. Just my last question is on injectables again. I think $73 million, I’m just calculating it from the $366 million, at least for the US business. But what is the global injectable size? I think Yugandhar mention it’s flat Y-o-Y, but is it closer to the $100 million still and what are our aspirations for $650 million. I think we pushed it out by a year. But just want to know if some of those aspirational targets can be reiterated, please. Thank you.

Yugandhar Puvvala — Chief Executive Officer

Yes Shyam, I think you said it right. We are $100 million plus for quarter, and we want to go towards $121 million, $125 million next financial year. And yeah, we are still quite hopeful that even after pushing by one year, like FY25 we should be around the numbers what we indicated in the past.

Shyam Srinivasan — Goldman Sachs — Analyst

Got it, sir. Thank you and all the best.

Operator

Thank you. And there are no further questions from the participant. I now hand the conference over to the management for the closing remarks.

Deepti Thakur — Investor Relations

Thank you all for joining us on the call today. If you have any of your questions unanswered, please feel free to keep in touch with the investor relations team. The transcript of this call will be uploaded on the website, www.aurobindo.com in due course. Thank you, and have a good day.

Operator

[Operator Closing Remarks]