Gland Pharma Limited (NSE:GLAND) Q3 FY23 Earnings Concall dated Jan. 23, 2023.
Corporate Participants:
Sumanta Bajpayee — Vice President, Finance and Investor Relations
Srinivas Sadu — Managing Director & Chief Executive Officer
Ravi Shekhar Mitra — Chief Financial Officer
Analysts:
Sudarshan Padmanabhan — JM Financial — Analyst
Saion Mukherjee — Nomura — Analyst
Shyam Srinivasan — Goldman Sachs — Analyst
Shubham Goyal — Motilal Oswal — Analyst
Kartik Mehta — Klay Securities — Analyst
Prakash Agarwal — Axis Capital — Analyst
Sameer Baisiwala — Morgan Stanley — Analyst
Tushar Manudhane — Motilal Oswal Financial Services — Analyst
Neha Manpuria — Bank of America — Analyst
Tarun Shetty — Haitong Securities — Analyst
Kunal Dhamesha — Macquarie Group — Analyst
Pramod Dangi — Unifi Investment Management — Analyst
Bino Pathiparampil — InCred Capital — Analyst
Mayur Shah — Marine Technologies — Analyst
Presentation:
Operator
Ladies and gentlemen. Good day, and welcome to Gland Pharma Limited Q3 FY ’23 Earnings Conference Call. 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. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Sumanta Bajpayee, Vice President, Finance and Investor Relations. Thank you, and over to you, sir.
Sumanta Bajpayee — Vice President, Finance and Investor Relations
Thank you, Faizan [Phonetic] Warm welcome to Gland Pharma’s Earnings Conference Call for the third quarter of financial year ’23. I have with me Mr. Srinivas Sadu, MD and CEO; Mr. Ravi Shekhar Mitra, our CFO, to discuss business performance and to answer queries during the call. We will begin the call with the business highlights and overview by Mr. Sadu, followed by financial overview by Mr. Mitra. After the opening remarks of the — from the management, operator will open the bridge for Q&A session. Our earnings presentation has been submitted to the stock exchanges and is available on our website. Before we proceed with the call, please note some of the statements made in today’s discussion may be forward-looking and are based on management estimates. This must be viewed in conjunction with the risks and uncertainties involved in our business. The Safe-Harbor language contained in our press release also pertains to this conference call. This call is being recorded and the playback shall be made available on our website shortly after the call. The transcript of the call will be submitted to the stock exchanges and made available on our website.
I will now hand over call to Mr. Sadu for his opening remarks. Thank you, all. Over to you, Mr. Sadu.
Srinivas Sadu — Managing Director & Chief Executive Officer
Thank you, Sumanta. Good evening, everyone. Thank you for joining our earnings call for the third quarter of fiscal 2023. Wish a happy New Year to all our shareholders, analysts, and their families. We entered into a Put Option Agreement in the last quarter and subsequently signed a share purchase agreement this month for the acquisition of Cenexi. This is our first acquisition overseas and it is in line with Gland’s long-term growth objectives. It will enable Gland to increase its presence and to expand its product and service offering capability in Europe, where it is currently not a significant player in the CDMO market. It also provides access to know-how in development capabilities in sterile and other innovative technologies like ophthalmic gels and needleless injectors. We are well-prepared to focus on integrating the business going forward.
We have already received EIR from US FDA post the audit conducted at our Dundigal facility. We have been at the forefront of maintaining highest standards of quality at our sites and we continue to invest in constant improvements. Our teams across all our sites remain prepared for any regulatory audit. As FDA has started physical audit, we’re also keeping a close watch on the progress of regulatory audits in the industry to ensure we are prepared to leverage any additional supply opportunities that may come up.
We closed this quarter Q3 FY ’23 with a revenue of rupees INR9,383 million as against INR10,683 million in Q3 FY ’22, and our PAT stood at INR2,319 million for the quarter against INR$2,730 million in Q3 FY ’22. We have generated INR398 million of cash flow from operations in Q3 FY ’23. The performance continues to be subdued on account of ongoing supply disruptions, certain production-related delays, and softer offtake of few of our key products in the U.S. Post line improvements, we’re in the process to ramp up production on our insulin line. We also had a two-week shutdown for a couple of lines at our Pashamylaram plant for line upgradation. We are focused on ensuring the supply continuity across our portfolio of products. We completed eight ANDA filings during Q3 FY ’23, in line with the filing plan. As mentioned during the last call, we have seen the pickup in filings during the quarter. We are in advanced stages of regulatory review for a couple of products filed in China and expect approvals very soon.
During Q3 FY ’23, upon excluding capital R&D expenditure, the R&D expenditure stands at INR500 million, which is 5.3% of the revenue for the period as against, INR394 million during the previous quarter. As on December 31, 2022, we along with our partners have 385 ANDA filings in the U.S. and 381 product registrations globally. We have begun the process of strengthening our U.S. subsidiary with the right talent to further focus on business development initiatives and building new partnerships. We’re also just strengthening the plant operations teams with new capacities coming online.
Let me summarize our performance across various geographies. Our rest of the world markets accounted for 21% of our Q3 FY ’23 revenue against 19% during Q3 FY ’22. We maintain an inventory of raw materials and packing materials to be able to cater to the demand. We continue to raise our products in new geographies. Our key markets continue to remain MENA, LATAM and APAC. Our core markets, namely U.S., Canada, Europe, Australia, and New Zealand accounted for 70% of our revenue, similar to the contribution in Q3 FY ’22. Part of our new launch product portfolio we have shipped out five product SKUs during the quarter, which included Regadenoson and Lacosamide among others.
The supply chain issues continued to impact the dispatches for these markets. We’re constantly working on improved material availability and resolving any production delays. India market accounts for 9% of our Q3 FY ’23 revenue. The steep price drop announced for key products like Heparin, the newly published NLEM list, has impacted sales and margins of our India business. The insulin line is still in the process of ramping up post line improvements. We hope to close the acquisition of Cenexi by March, April 2023, after which our focus shall be on leveraging synergies between our businesses to generate stakeholder value. China remains a key geographic focus and we expect to start receiving approvals soon.
On the portfolio front, we filed two more complex injectable products during the last quarter and continued to invest in the long-term growth of the business.
With this, I wish everyone good health. I would like to now hand over the call to our CFO, Mr. Ravi Mitra, who will share details about our financial performance for the quarter. Thank you.
Ravi Shekhar Mitra — Chief Financial Officer
Thank you, Mr. Sadu. Good evening, everyone. Thank you very much for attending our third quarter earnings call. Let me begin with sharing the financial performance of third quarter and nine months ended December 31, 2022. The revenue from operations for the Q3 FY ’23 stood at INR9,383 million, a reduction of 12% on year-on-year basis. Revenue from operations for the nine months period of fiscal ’23 stood at INR28,396 million, a year-on-year a decrease of 14%. The primary reasons for reduced revenue are due to certain supply-side challenges and lower offtake of some of the older products. Revenue contribution from new products launched during the period were lesser than previous year. Other income for the third quarter was INR615 million, which includes interest on fixed deposit and foreign exchange gains on operations. For the nine months FY ’23, the other income was INR2015 million, of which interest on fixed deposit was INR1,314 million and foreign exchange gains and operation was INR665 million.
Gross margin for Q3 FY ’23 has improved due to change in geography and product mix. Gross margin in nine months period of current financial year remained stable as compared to same period of previous financial year. We have reported an EBITDA of INR3,511 million in Q3 FY ’23, compared to INR3,946 million, which is a decrease of 11% compared to same period last financial year. Energy cost increased as compared to same period previous year but has reduced compared to Q2 FY ’23. Higher employee cost during the quarter as compared to previous period was largely due to additional people added to support the new production lines in Pashamylaram plants and for the bio CDMO facility.
EBITDA margin excluding other income for Q3 was 31% and was 30% for the nine months period. Our net profit for third quarter decreased by 15% and stood at INR2,319 million compared to Q3 FY ’22 due to decrease in EBITDA and higher depreciation expense on newly capitalized assets. During the quarter, we have recorded PAT margin of 23%. During the nine months period of the current financial year, our PAT was INR7,024 million at 23% margin.
The total R&D expenses for third quarter was INR512 million and stands at 5.5% of the revenue as against INR699 million, 6.6% of revenue in the same period of previous year. The total R&D expenses for the nine months period was INR1,336 million, which is 4.7% of our revenue. Our effective tax rate remains at about 25% in third quarter and 26% for nine months of the current financial year. Cash flow from operation during nine months period was INR4,354 million. Working capital increased and stood at INR23,322 million as on December 31, as compared to INR20,217 million as on March 31, ’22, due to increase in inventory and receivable levels. Average cash conversion cycle stood at 246 days for the nine months ending December ’22 as compared to 190 days of same period last financial year. Increased receivable and inventory days has pushed overall cash conversion cycle, which we expect to normalize.
Total CAPEX incurred during nine months of fiscal ’23 was INR1,253 million. Microsphere powder filling line and the additional bag line project is on track. Our ROC on ex-cash basis was at 20% on an annualized basis for the nine months period for this fiscal year. Our fixed assets turnover stood at 2.4 times for nine months FY ’23, decreased from 3.2 times for the same period last year. As on December ’22, we had total INR38,297 million of cash in bank balances, which we intend to utilize for the capex plan and to fund Cenexi acquisition.
With this, I would request the moderator to open the lines for questions. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. [Operator Instructions] Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. Should you have a follow-up question, we would request you to rejoin the question queue. [Operator Instructions] The first question is from the line of Sudarshan Padmanabhan from JM Financial. Please, go ahead.
Sudarshan Padmanabhan — JM Financial — Analyst
Yeah. Thank you for taking my question. My question is on the comment about the supply chain issues still persisting, because I remember, the previous quarter, we did mention that we are approving a lot more newer couple of new players for the supply chain. So, the broad belief was the supply chain was easing. So, has there been a difference in the commentary post the last communication?
Srinivas Sadu — Managing Director & Chief Executive Officer
No. We did resolve most of supply chain issues. I think still few issues still persist. We did apply for specifically for Heparin. We did apply for a second source. We have not received approval yet. So, we’re waiting for that approval. But there one or two smaller products that have these issues, but generally, like syringes and some of these have been addressed.
Sudarshan Padmanabhan — JM Financial — Analyst
Yeah. And I mean, if that is the case which I’m looking at it from a Q-on-Q basis, I mean, both — I’m talking about the U.S. side as well as the RoW market — development in RoW market, we have seen a decline. I mean, I would assume that the decline would also beyond the volumes side. So, I mean, has there been a change in the demand, or have we lost market share in some of the key products? If you can give some color on why we’re seeing a Q-on-Q decline.
Ravi Shekhar Mitra — Chief Financial Officer
I won’t say at the end market, there’s a decline in the market share, but I think it’s all the timing. If you look at our Enoxaparin on an annual basis, still our revenues is around $50 million. If you look at last quarter, it’s about $5 million. I think it’s a timing issue for the particular product. And also, what we have seen is maybe because of the high fed rate. People are rationalizing the inventories. People will be holding seven to eight months inventory earlier. Now I think they’re cutting down on the inventory levels. We have seen a substantial shift in that. So, the offtake has been softer, to be fair. And the replacement of those what we lost was a couple of big products, that couldn’t get replaced by some of the big launches what we mentioned in the last quarter also. So, offtake has been softer, but at the end market level, still at least our key products, the market share remains intact. I think it’s the question of timing and also the way the partners are looking at the inventories right now.
Sudarshan Padmanabhan — JM Financial — Analyst
On the inventory adjustment given that the last couple of quarters, we are seeing that inventory adjustment continuously happening, I mean, has that kind of settled to a reasonable level? I mean, I’m just assuming that going forward, would there be an improvement in the U.S. and the RoW market with this issue — no issues resolved?
Ravi Shekhar Mitra — Chief Financial Officer
So, we have to see, like I said, there is a tremendous competition at the marketplace and also — there are also some exits happening at the front end. Being a B2B player, we have to see who are the guys who are exiting certain products and certain businesses. It’s a dynamic situation right now. We’re monitoring it. But otherwise, from endpoint perspective, the products what we’ve been selling over the years, those volumes remain intact, I believe, the key products. But barring the new product launches, that’s not done pretty well because of the competition in the market.
Sudarshan Padmanabhan — JM Financial — Analyst
One final question before I join back is we’re seeing some of the competitors getting import alert or a warning letter. I mean, I don’t want to name them specifically. Does that open an opportunity for you in terms of tapping incremental volumes?
Srinivas Sadu — Managing Director & Chief Executive Officer
Yes. There’s active things happening in that space also. A couple of, I would say, to be specific, two companies we’re interacting with to transfer some of the products to our sites. It might take one or two quarters, but, yeah, there’s a substantial movement in that since several products are under discussions to getting transfer and some are in the agreement state, yes.
Sudarshan Padmanabhan — JM Financial — Analyst
Sure. Thanks a lot. I had some more questions, I’ll come back on the queue.
Srinivas Sadu — Managing Director & Chief Executive Officer
Sure.
Operator
Thank you. The next question is from the line of Saion Mukherjee from Nomura. Please, go ahead.
Saion Mukherjee — Nomura — Analyst
Hi. Good evening. Sir, can you share the profit share number for this quarter and has that sort of increased/decreased versus the previous quarter?
Srinivas Sadu — Managing Director & Chief Executive Officer
Yeah. Just a second.
Ravi Shekhar Mitra — Chief Financial Officer
Yeah. Saion, profit share for this quarter is at 9%, and previous quarter, it was 7%, last year it was 10%.
Saion Mukherjee — Nomura — Analyst
Okay. Now you talked about the competitive pressure, so, we have seen this increase. So, I’m just wondering what’s the sustainable number? Is the 9% on a higher side, do you think?
Srinivas Sadu — Managing Director & Chief Executive Officer
No, I think it should be sustainable at this level. See, one way is, do we want to compromise on margin and then go aggressively on the top-line, and which are reluctant to do because then it’s a permanent damage you’re going to cause for the market. So, it’s like an ongoing discussion with our partners, and we want to do that. So, currently, the focus is on how to keep the margin intact even if the revenue numbers are not that great, because we’re seeing several companies exiting because of the price pressures and the costs involved. And we have seen historically, that’s what has happened. And then — but we don’t want to damage the whole market by reducing our price. So, we want to keep that margins, and I think, currently, the focus is how to keep the margins intact and improve the margins internally.
Saion Mukherjee — Nomura — Analyst
Okay. Sir, my second question is on growth. Now, of course, this year, we have seen a lot of disruptions. Even the previous years, there was COVID and demand associated with that. If I look at from a three-year perspective, we are seeing 13% CAGR, maybe it’s 9%, 10% in dollar terms. How should we think about growth in this changed environment, where you’re talking about price pressure, you’re talking about — I mean, the kind of opportunities you had in the past is currently not visible. So, how should we think about growth from FY ’24 onwards?
Srinivas Sadu — Managing Director & Chief Executive Officer
Well, we can’t really comment on the growth percentage. We just now mentioned about companies getting input alerts and all that, which was existent even prior to COVID. That was always another opportunity we encashed on. And that’s been our strength in terms of quality and manufacturing that we’re seeing coming back. That’s one area. But there are also large products where we did very well in ’21, ’20. To replace those losses, we’re taking lot more capacities, which we’re incrementally increasing the capacities. So, while there are positives on terms of transfers happening from other sites and increased capacities, there’s also a pressure and competition pressures. Now we’re seeing some exits happening in the marketplace. We just need to see how this pans out in next six months to come out from a clear vision on how the margins and how the sales will pan out.
Saion Mukherjee — Nomura — Analyst
Okay. Sir, you mentioned in your opening remarks about supply of Regadenoson to the U.S. I mean, can you comment how large is this opportunity for Gland?
Srinivas Sadu — Managing Director & Chief Executive Officer
We can’t really comment because there are few players in it. So, we’ll be one among the first few launches. So, like from number-wise, we can’t really comment yet.
Saion Mukherjee — Nomura — Analyst
Okay. Thank you.
Operator
Thank you. The next question is from the line of Shyam Srinivasan from Goldman Sachs. Please, go ahead.
Shyam Srinivasan — Goldman Sachs — Analyst
Thank you. Good evening and thank you for taking my questions. Just the first one on the gross margins. We actually saw a Q-o-Q improvement. I think, in the opening remarks, you mentioned about product mix and geography. So, if you could please elaborate. And is this sustainable?
Srinivas Sadu — Managing Director & Chief Executive Officer
Yeah. The focus is on to improve these margins both internally and also like I said from a material perspective, we have qualified some alternate sources to get cheaper. And I think in the next few quarters, the focus is on improving the margins in that perspective. And also, there are some products where it’s low-margin business which we’re trying to stay away from because of the risk involved with very low margins. So — and also if you see, we did mention about India business, there are products which get into NLEM which are in the borderline cases earlier. So, we don’t want to go aggressively and pursue those kind of. So, it’s a combination of our own strategy how to minimize the low though margin products and utilize that space or the capacities for high margin products.
Shyam Srinivasan — Goldman Sachs — Analyst
Got it. Thank you for that. And my second question is just elaborating on Enoxaparin again. I think you said it’s a $50 million product, but we are doing $5 million in the Q3. So, can you — is there a possibility that we go back to the $50 million run rate at some point of time, or what are some of the stumbling blocks here? I think the syringes, you said, is now back. So, just wanted to understand, is it, like you said, timing issues of March or June quarter, we will go to — we’ll try and do $12.5 million? I’m just trying to get some kind of a pathway on your like top product.
Srinivas Sadu — Managing Director & Chief Executive Officer
So, without getting into a lot of technical things, see, basically, our run rate for the year is about $50 million. That’s been run rate. Few quarters we’re doing more on the run rates and few months, it’s less. If you look at the previous quarter, I think it was about $20 million. We billed $19 million previous that $20 million, something like that. So, it’s more a timing issue when you’re billing this, number one. Number two, also, the inventory-wise how much — which SKU the partner is holding, because there are several SKUs in this product. Some are high-value and some are low-value SKUs. So, it depends on which SKU gets dispatches which quarter. So — but on annual basis, still the run rate is intact.
Shyam Srinivasan — Goldman Sachs — Analyst
Just last question, just following up. I thought we had a step-up to go to $70 million or $80 million with additional contracts in Enoxaparin. So, that may not happen, right? It looks like.
Srinivas Sadu — Managing Director & Chief Executive Officer
So, current run rate is about what $50 million. That’s what we are seeing. But the transition is happening. That’s why I said it is getting difficult to get into technical, because the two NDCs partners having. So, they have to move a few hospitals one after another from NDC to another. So, that’s what is taking time. But I think future, I think it will move to those numbers, but currently, the run rate is that much.
Shyam Srinivasan — Goldman Sachs — Analyst
Okay. Thank you and all the best.
Operator
Thank you. Ladies and gentlemen, please limit your questions to two per participant. Should you have a follow-up question, we would request you to rejoin the question queue. The next question is from the line of Shubham Goyal from Motilal Oswal. Please, go ahead.
Shubham Goyal — Motilal Oswal — Analyst
Good evening, sir.
Srinivas Sadu — Managing Director & Chief Executive Officer
Yeah. Good evening.
Shubham Goyal — Motilal Oswal — Analyst
Hello? Yeah. Sir, actually my question is that, like I know a few peers — a few of your peers from the pharma industry are also entering the European market. So, what is your strategy considering that you also have some supply chain issues, as you mentioned?
Srinivas Sadu — Managing Director & Chief Executive Officer
So, Europe, as we are purely CDMO there. So, we’re not launching products yet. So, the first area is to continue business what they’re doing, the purely CDMO where they manufacture products for the branded generics. And that will continue, and then leverage our contacts with the players who have a presence in Europe, but getting product done at somewhere. So, that can be leveraged and get some of those businesses to our side. So, we can’t really compare with the peers who are launching their own products in Europe, because we are purely a CDMO player from Cenexi Group.
Shubham Goyal — Motilal Oswal — Analyst
Okay. Thank you. That answers my question.
Operator
Thank you. The next question is from the line of Kartik Mehta from Klay Securities. Please, go ahead.
Kartik Mehta — Klay Securities — Analyst
Yeah. Hi. Thank you for the opportunity. If you could just talk about the acquisition and — which is now still going to be integrated with this acquisition, broadly, if you have to take a two- to three-year view, what it does to our existing business, I mean, I don’t want the numbers, but three years down the line with the combined entity approaching a European customer vis-a-vis other Indian players who do business in the U.S., what would Gland in a way look like? I’m not asking for any numbers, I just want to know about the overall offering that an entity will have after the acquisition. Thank you.
Srinivas Sadu — Managing Director & Chief Executive Officer
Yeah. So, if you look at currently where we started at Gland and where we are today, our business moved from a pure CMO/CDMO to more product — generic product-driven company, and the mix has moved towards more on a product company. And now with the Cenexi acquisition where entire 100% of the revenue comes from the CDMO, so our mix actually improves because the competition what you’re seeing in the generic space will get diluted a bit because there are more stronger CDMO players in that sense. That’s one. Second, our strategy getting into biologic CDMO players, that will strengthen because Europe is a place to be in for a lot of these opportunities to get in, and this will add to that capability as well. So, overall, I’d say from a business perspective, we’re giving a more balanced business for the company in a longer run to avoid the fluctuation what we’re having this generic competition. At the same time, getting access to newer technologies which we don’t have today and getting into the branded side of the business which we don’t have today. I would say it’s a broader offering in the same space.
Kartik Mehta — Klay Securities — Analyst
Thank you. And from the perspective that this was asked by one of the participants in terms of large player in India for receiving very severe observations is competitors in the tonnage space. In terms of timelines, you spoke about two or three quarters, but then in terms of capacity, if you have to move those volumes or more volumes, are we equipped — do we have that, or can that be done in the two, three quarters’ time? Can you throw some light on the opportunity? I mean, in terms of the capacity and the opportunity. Thank you.
Srinivas Sadu — Managing Director & Chief Executive Officer
Yeah. So, what the capacity is what we have had recently in terms of liquids and lyos, that will help with it. And also, in the last year when we converted one of these biologics lines to cater to that, because of the recent increase in demand of these opportunities, we’ve gone back and changed one of these lines to the regular product portfolio. So, that is getting added this quarter. So, we have actually increased [Indecipherable] to cater to these additional needs what we’re hearing from the market. That’s one. Second, the discussions are also around how — where the products are common. We can actually license our own products instead of transferring and taking more time to transfer this product and getting more expensive. So, we are replacing that with our own products. So, it’s a combination of transfers as well as our own product licensing to these players.
Kartik Mehta — Klay Securities — Analyst
Thank you.
Operator
Thank you. The next question is from the line of Prakash Agarwal from Axis Capital. Please, go ahead.
Prakash Agarwal — Axis Capital — Analyst
Yeah. Hi. Thanks for the opportunity, and good evening to the management. Just understanding, U.S. better versus the last call, we had talked about three things. One was pricing pressure which you started seeing in Q2. Then there was a stopper issue, which was expected, the Heparin — and expected to revive in November ’22. And thirdly, you mentioned inventory, so there is still inventory, some clarification that you mentioned about weather, etc. just clarification upon which is also slowing down post COVID. That is all from my side.
Srinivas Sadu — Managing Director & Chief Executive Officer
Yeah, I think all three are right. The competition, the price pressure is there. And it’s all related, right? Once you see the price pressure, new players entering to sell these products will also come down. So, we don’t have an alternative. In terms of the stoppers, I think temporarily, we got one supply last quarter, but then there were no subsequent supplies. But we did qualify the second supplier and we applied for an approval, so that should — that we should get next month or two. We have submitted a CBE-30 this month. But from the inventory perspective, we have seen a larger impact of that. We realized it’s only one product, but we have seen across most of the products, people are cutting down on inventories, how much they’re holding. And earlier, the inventories were longer period they were holding. And being a B2B that’s impacting us larger than probably other players are getting impacted.
Prakash Agarwal — Axis Capital — Analyst
No. So, wanted some clarification, is it a demand issue or is it just keeping inventory down? I mean, have you seen that in terms of number of days for them coming down, or do you think the offtake itself is softer?
Srinivas Sadu — Managing Director & Chief Executive Officer
I think it’s — I think mostly, it’s inventory days coming down for some of the key products. But there are also products where it’s a softer offtake because there are other players who have come in with those products. And that’s mostly the newer products what we launched in the recent times.
Prakash Agarwal — Axis Capital — Analyst
And Heparin, November ’22, have you — you said you got some supply, but it not full supply?
Srinivas Sadu — Managing Director & Chief Executive Officer
Correct. So, we did dispatch whatever we got and now the next supply is not in the near-term. So, we have qualified the second one. Once that gets approved, that will get started to and supplies are starting.
Prakash Agarwal — Axis Capital — Analyst
So, moving into Q4 and fiscal ’24, of the three, which is lesser pain point for us, and which is the improving outlook of the three?
Srinivas Sadu — Managing Director & Chief Executive Officer
I think the near-term pain point is still the inventories we’re seeing because the near-term focus is still reflecting the softer pickup because of the inventory dilution. But at the end market, we’re seeing the same numbers for at least our key products. So, that’s a good sign. But also, there are lot of transfers which are happening. That could be a positive point from the first quarter of next fiscal.
Prakash Agarwal — Axis Capital — Analyst
And I mean, so summarizing that we do expect growth coming back from fiscal ’24?
Srinivas Sadu — Managing Director & Chief Executive Officer
Yeah. That’s an estimate and that’s what we’re looking at, looking at the opportunity, yes.
Prakash Agarwal — Axis Capital — Analyst
Okay. And secondly, on China, so you mentioned there are two products expected in fiscal ’23. How are we placed there? I mean, is it still this fiscal, or it might be a calendar year thing for us?
Srinivas Sadu — Managing Director & Chief Executive Officer
Yeah. In fact, we’re expecting in December the clearance phase, at least one product. It’s — and the Chinese, that product is almost $100 million product. That’s what we understood. But that’s expected anytime. We thought of December, it didn’t happen. So, it’s a holiday now. So, it could be Jan, Feb, or maybe next quarter.
Prakash Agarwal — Axis Capital — Analyst
So, $100 million is the market opportunity? We would be participating in that?
Srinivas Sadu — Managing Director & Chief Executive Officer
Yeah. Correct.
Prakash Agarwal — Axis Capital — Analyst
And it would be at least, say, a five-player market already?
Srinivas Sadu — Managing Director & Chief Executive Officer
There is a local player, but being specific product and — which is going through the first approval based on the FDA approval, so, we have to see how it’s — how it will be placed. But we are little positive about this product, yes.
Prakash Agarwal — Axis Capital — Analyst
Okay. Thank you so much.
Operator
Thank you. The next question is from the line of Sameer Baisiwala from Morgan Stanley. Please, go ahead.
Sameer Baisiwala — Morgan Stanley — Analyst
Hi. Thank you, and good evening, everyone. So, just talking about the stopper supplier resumption for Heparin, assuming it gets normalized in the next couple of months, would you get the entire business back, or do you think part of it is already gone by — taken up by competitors? If I’m not wrong, it was INR160 crores odd on a full-year basis.
Srinivas Sadu — Managing Director & Chief Executive Officer
Off the head, I don’t remember the numbers, but I know the one strength what we have, we’re still holding the contract, the $30 million, which is in discussion. At least, we’re not seeing the product going away.
Sameer Baisiwala — Morgan Stanley — Analyst
Okay. Which means that you will get part of it back, not fully?
Srinivas Sadu — Managing Director & Chief Executive Officer
I can’t comment on — that’s what I’m saying. So, the contract still is in place. So — and the orders and the forecast is there. So, we’ve got to see by the time we end up, we just supplied the product. So, it’s moving well. So, we have to wait and watch how much we can get — or can we get the entire market?
Sameer Baisiwala — Morgan Stanley — Analyst
Okay. And for Enoxaparin, it looks like you have done $44 million in the nine months. So, does it mean that Q4 will also be sort of considering $50 million run rate that you have?
Srinivas Sadu — Managing Director & Chief Executive Officer
But it’s — so it all depends on which quarter how much offtake could we have. But on an annual basis, that’s a number the estimate to have, $50 million, yeah.
Sameer Baisiwala — Morgan Stanley — Analyst
Okay. And, sir, if you can just help us with the expansion going on at Pashamylaram site. How many lines do you have right now and how many you plan to add in fiscal ’24 and ’25?
Srinivas Sadu — Managing Director & Chief Executive Officer
Currently, we have eight lines, out of which three lines are not still active, it’s Just under validation. The first one, we are taking the exhibit batches. That will be commercialized this quarter. And the other line what we just mentioned about were two more coming on track. That will be commercialized next quarter. So, by the time we qualify everything, we’ll be having 11 lines, three to be — four to be qualified and commercialized.
Sameer Baisiwala — Morgan Stanley — Analyst
Okay. So, if I’m not wrong, sir, five are operational right now, and you’re adding six more? And so, 11 would be operational in next 12 months or so. Is that the right number?
Srinivas Sadu — Managing Director & Chief Executive Officer
Yeah, correct.
Sameer Baisiwala — Morgan Stanley — Analyst
Okay. That’s great. Sir, with your permission, one final question, and that is on China and biosimilars and CDMO. In two-years’ time, how big can these be opportunity for you? Any ballpark, any signpost you can give us?
Srinivas Sadu — Managing Director & Chief Executive Officer
Give me a second.
Ravi Shekhar Mitra — Chief Financial Officer
Yeah. So, bio it’s too early to comment on the numbers. It’s just — we’re at a very nascent stage. But China, and, again, it’s a large market where we’re targeting 14 products this year — till this year, and then few more coming next year. So, we’re looking at a few billion-dollar products we’re targeting. So, we have to see how much market share we will get. So, from number perspective, it’s too early to comment on before we launch because it’s a new market for us. We have to see how it goes.
Sameer Baisiwala — Morgan Stanley — Analyst
Okay. Great. Thank you so much.
Operator
Thank you. The next question is from the line of Tushar Manudhane from Motilal Oswal Financial Services. Please, go ahead.
Tushar Manudhane — Motilal Oswal Financial Services — Analyst
Sir, just again on this biosimilars, so how much capex — new capex you’re heading up for biosimilar CDMO facility?
Ravi Shekhar Mitra — Chief Financial Officer
For biosimilar CDMO facility, we have more or less spent about INR300 crores. And now we are in evaluation stage with the customer how much more we need. It should not be very significant headcount. But overall capex plan is about going to be INR200 crores to INR250 crores for this year. And next year, it could be around INR300 crores.
Srinivas Sadu — Managing Director & Chief Executive Officer
This is overall.
Tushar Manudhane — Motilal Oswal Financial Services — Analyst
Already spent INR3 billion, INR250 crores for FY ’23 and another INR200 crores, INR250 crores for FY ’24, that’s right?
Srinivas Sadu — Managing Director & Chief Executive Officer
No. So, first, biosimilar, we have already spent INR300 crores. And now on overall basis, company as a whole, we will be spending INR200 crores to INR250 crores for other projects. Like Pashamylaram, we are spending, and Vizag API we are spending. So, that number is INR250 crores for this year and INR300 crores for next year.
Tushar Manudhane — Motilal Oswal Financial Services — Analyst
Sure. And, sir, any other product other Enoxaparin where you have a significant headwind and the business visibility is relatively getting reduced maybe on account of pricing pressure or the new player coming in or on account of inventory restructuring so to say?
Srinivas Sadu — Managing Director & Chief Executive Officer
No, I would say the damage is already done. So, the numbers we are seeing based on the impacts what we had in another large product, mica, that was a big product in 2021. It’s almost contributing about, I don’t know, larger number, INR300 crores, INR400 crores, I’m not even sure. But that’s got settled now. So, in terms of market share, we still hold 50% market share. Although, first year, we were holding 80% market share. And that’s intact. So, I don’t think there is any impact in terms of more going down on this. But newer products, well, we were a little concerned it’s not contributing as much to recover the loss we got from these large products.
Tushar Manudhane — Motilal Oswal Financial Services — Analyst
Okay. And just again on gross margin, at least on a quarter-on-quarter basis where the core market sales has been lesser, and even the RoW market. So, what’s driving the — and at the same time, we have pricing pressure as well. So, what’s driving the gross margins?
Srinivas Sadu — Managing Director & Chief Executive Officer
Yeah. I think it’s, like I said, the — some of the areas where we’re qualified alternative sources, that has increased our contribution margins for some products, and that we continue to do. Some products we have increased the batch sizes to get better efficiencies. That has contributed. And, of course, the mix. Some of the products which have a lower margin, we sold less compared to the high-margin products. I think it’s a combination of everything.
Tushar Manudhane — Motilal Oswal Financial Services — Analyst
So, this gross margin can sustain, right, even — so given that Enoxaparin is already less in the overall scheme of things, other products are sort of stabilized. So, this level of gross margin can be expected going forward?
Srinivas Sadu — Managing Director & Chief Executive Officer
The idea is to maintain that. We’re not able to judge how the market behaves. But the idea is to maintain this kind of margin.
Tushar Manudhane — Motilal Oswal Financial Services — Analyst
Sure, sir. Thanks. That helps. Thanks a lot.
Operator
Thank you. The next question is from the line of Neha Manpuria from Bank of America. Please, go ahead. Neha Manpuria, your line is in talk mode. Please, go ahead with your question.
Neha Manpuria — Bank of America — Analyst
Yeah. Thank you so much. Sir, just wanted to get some color on the complex finding that we’ve been making. We mentioned a few — in the last year and we also mentioned a few more this year. Any color on what areas these are and then — when should we start seeing contribution from this in the new launches?
Srinivas Sadu — Managing Director & Chief Executive Officer
These four products in our different market value perspective, it’s, I think, about INR2 billion. And these are into peptides and the one we’re going to file, I think, next quarter on a suspension product. So, it’s a combination of hormonal peptides and suspensions. And at least, we should see some coming, one or two products getting approvals in FY ’24 and the rest post that. Hello?
Ravi Shekhar Mitra — Chief Financial Officer
Hello, Neha?
Operator
Ms. Manpuria, is there another question?
Neha Manpuria — Bank of America — Analyst
Sorry. Yeah, just a follow-up. The filings that we made in FY ’22, we’ve seen a fair bit of pickup then. Those should also start seeing approval given the next few quarters, right, sir?
Srinivas Sadu — Managing Director & Chief Executive Officer
Yeah. That’s correct, yes.
Neha Manpuria — Bank of America — Analyst
And out of that, how many would be complex in your view?
Srinivas Sadu — Managing Director & Chief Executive Officer
Totally, we have done complex products four till now.
Neha Manpuria — Bank of America — Analyst
Okay. So, two last year and two in this quarter?
Srinivas Sadu — Managing Director & Chief Executive Officer
Correct.
Neha Manpuria — Bank of America — Analyst
Out of which, you said one or two approvals in FY ’24 and the rest thereafter?
Srinivas Sadu — Managing Director & Chief Executive Officer
Correct.
Neha Manpuria — Bank of America — Analyst
Okay. Got it. Thank you so much.
Operator
Thank you. The next question is from the line of Tarun Shetty from Haitong. Please, go ahead.
Tarun Shetty — Haitong Securities — Analyst
Good evening and thank you for this opportunity. Just one clarification, first. You mentioned $50 million of Enoxaparin sales. That is for the U.S. market, if I’m right?
Srinivas Sadu — Managing Director & Chief Executive Officer
That’s correct.
Tarun Shetty — Haitong Securities — Analyst
Okay. And the — you’re looking to launch around 14 odd products in the Chinese market, that is for CY ’23, or this would spill over to the next year also?
Srinivas Sadu — Managing Director & Chief Executive Officer
Those are the filings I mentioned about, not launches. The launches could be post that, yeah.
Tarun Shetty — Haitong Securities — Analyst
So, in total, we’re looking at one near-term launch in FY ’24. And any more launches in the China side in FY ’24?
Srinivas Sadu — Managing Director & Chief Executive Officer
Yeah. Maybe couple of more launches might happen in FY ’24 and the rest post that.
Tarun Shetty — Haitong Securities — Analyst
Okay. And lastly, just a final comment on the R&D spend with more complex…
Operator
Sorry to interrupt you, Mr. Shetty, the audio is not clear from your line. Sir, please use the handset.
Tarun Shetty — Haitong Securities — Analyst
Can you — is this better?
Operator
Yes, sir.
Srinivas Sadu — Managing Director & Chief Executive Officer
Yeah, it’s better. Go ahead.
Tarun Shetty — Haitong Securities — Analyst
Yeah. So, lastly, on the R&D spend, so do you see this increasing as you move into more complex products for filings in the near-term?
Srinivas Sadu — Managing Director & Chief Executive Officer
I think from an absolute number perspective, we already moved to highest spend compared to before. We’re spending around 5%, 5.5%, or maybe 5% around with a larger base. So, it’s already baked in.
Tarun Shetty — Haitong Securities — Analyst
Okay. Yeah. That’s it from my side. Thank you.
Operator
Thank you. The next question is from the line of Kunal Dhamesha from Macquarie Group. Please, go ahead.
Kunal Dhamesha — Macquarie Group — Analyst
Yeah. Good evening. Thank you for taking my question. So, first one, basically, now that more low-cost Indian players entering the injectable market, we see more shift from the likes of Hospira, Hikma, towards — for their older product maybe where they might not be as competitive as Indian players, because still the generic injectable market is still dominated by Hospira, Hikma and Fresenius Kabi. So, has there been any acceleration in the shift from their own manufacturing to people like, big companies like Gland or any other company?
Srinivas Sadu — Managing Director & Chief Executive Officer
So, we have seen few Indian players actually getting into this space as well, in the manufacturing side. So, I would say, the virtual companies in the U.S. are going down, which also contributed significantly for launching newer products. So, that’s going down a bit. But, yeah, too, we know from Pfizer perspective or those companies’ perspective, we are hearing some product transfers happening to Indian manufacturers. And if the pressure continues heading, that will only increase hopefully.
Kunal Dhamesha — Macquarie Group — Analyst
So, you are suggesting that there are similar Indian companies as well offering similar service to the like Pfizer and those are not the direct B2C guys?
Srinivas Sadu — Managing Director & Chief Executive Officer
No, there are companies who are doing the pure CMO, not like us where we develop products and license, but there are also some few contract manufacturers there offering services but in a smaller scale.
Kunal Dhamesha — Macquarie Group — Analyst
Okay. And now that we have seen what B2C has to offer and what B2B has to offer when the competition intensifies, would it still make sense for us to do all the legwork in terms of developing ANDA, etc., and then giving out that to someone and give you 50% profit share maybe?
Srinivas Sadu — Managing Director & Chief Executive Officer
Well, that’s a debate we always do. And it comes from perspective of manufacturing efficiencies and cost. In the model what we are — we’ve been doing it for so many years, the throughput what we give, it’s not possible if we just go into our own on a B2C basis. So, the number of the volumes will come down. And are we going to be competitive enough to offer this, number one, or — that’s one. Second is, do we want to become a low-margin, front-end company, because it’s also an expense related to your sales force because we looked at B2C companies $25 million, $30 million odd on your sales force. So, from that angle, our strengths are manufacturing and quality. If you can work on your strengths, I think there’s still market there. It’s a temporary situation where there’s a disruption there. But I think if you can stay foot on your strategy and work on — keep working on your strengths in terms of quality and manufacturing, I think there’s market out there.
Kunal Dhamesha — Macquarie Group — Analyst
Sir, just a follow-up, as you said that this is kind of a temporary situation where the competition increases and then it kind of balances out. In your view, previously, have you seen such cycle and the vendors that kind of balance out?
Srinivas Sadu — Managing Director & Chief Executive Officer
Yeah. I think we did see, I think, in 2016, 2015, 2016 that time when we ourselves had a flat year. So, we did see that players coming in and exiting. So, we are seeing that as we speak, some players exiting the space. It’s just that the temporary blip where we ourselves are supplying products to these companies, but during the exit, there will be a revenue pressure. But then it’s also — long-term, it’s good because the competition is getting reduced. And fair enough, you can see lot of products going into the shortage situation, but still, it’s not catching up. I think the prices will catch up once some of the products are getting into 40%, 50% of shortage situation right now.
Kunal Dhamesha — Macquarie Group — Analyst
Okay. And the last one, if I may. So, on the client side, the inventory days are reducing, and on our side, the inventory days are kind of increasing. So, what’s disconnect there? Are we expecting demand to come back in a very strong manner in the near term? What’s the key thing behind having more inventory right now?
Srinivas Sadu — Managing Director & Chief Executive Officer
So, one is, we don’t want to get into a situation what we faced last nine months, because of the long lead times we were having. So, that’s one. Second, it’s also reversed because the offtake is lower, but the end market is still intact. So, based on that, we’re trying to keep those inventories. And also, be ready with the — we did touch up on a point where the audits are happening and we are seeing lot of issues happening in different sites. We want to be ready with those kind of opportunities which we couldn’t encash in last few quarters, I would say.
Kunal Dhamesha — Macquarie Group — Analyst
Okay. Thank you.
Operator
Thank you. The next question is from the line of Pramod Dangi from Unifi Investment Management. Please, go ahead.
Pramod Dangi — Unifi Investment Management — Analyst
Yeah. Thanks. You have explained it, but I just want one thing, two parts on the working capital side. One side, we are saying our…
Operator
Sorry to interrupt you, Mr. Dangi. The audio is not clear from your line. Please use the handset mode.
Pramod Dangi — Unifi Investment Management — Analyst
Is it better now?
Operator
Yes, sir. Thank you.
Srinivas Sadu — Managing Director & Chief Executive Officer
Yeah, go ahead.
Pramod Dangi — Unifi Investment Management — Analyst
No, so, thanks for the opportunity. My question is on the working capital side. One side, we are saying that we had the supply side issue for few of the products. On the other side, our inventory days has gone up significantly. So, would you say that product where we don’t have any supply chain issue, the inventory actually have sort of drastically beyond 217 beds which we have reported? That’s the one. And the second is, again, when our customers are cutting down on the inventory, obviously, their cash flow would be — would have been improved. But at the same time, our debtors, they also went up. So, is it that we are pushing inventory to the customers? Is it that more credit has been given to the customers throughout the industry? Or, is it — these two things, if you can throw some light on these two parts?
Srinivas Sadu — Managing Director & Chief Executive Officer
So, one, I think Ravi will address the second part. One is on the inventory. Just take an example of Heparin, right? We are sitting on the API with 15 other components and we just don’t have stopper. So, still the rest of the inventory we’re sitting on a high value. We’re not able to sell the product, but still have to hold the inventory, waiting for the one component to come. So, likewise, there will be products where one is missing but I have the rest of the materials. So, I have to sit on that inventory. So, that’s one reason why we have the situation. And I think the rest Ravi will tell.
Ravi Shekhar Mitra — Chief Financial Officer
Yeah. So, receivable, to your question, this is a factor of that most of the sale is towards the quarter end, and the receivable are due mostly. So, it is appearing like this. This is similar to also what we have faced in the last two quarters. But if you’re comparing with last year, yes, that time we had uniform sale. So, this year, it got due and we collected. But here it is towards the fag end of the quarter which has led to this spike.
Srinivas Sadu — Managing Director & Chief Executive Officer
And also, I think our RoW business is.
Ravi Shekhar Mitra — Chief Financial Officer
Yes. RoW has, yeah.
Pramod Dangi — Unifi Investment Management — Analyst
And is there any discounting which had happened on the pricing because of the inventory at our level and the people cutting — customer cutting down on the inventory? So, have you offered any kind of a discount to the customers? Any specific discounts?
Srinivas Sadu — Managing Director & Chief Executive Officer
No, we don’t do that. See, ultimately, it’s not impacting the end sale. See, what we have to see is if it is impacting the end sale. And we don’t want to do that because why do you want to give a discount just to push inventory from India to the U.S. No, we don’t do that.
Pramod Dangi — Unifi Investment Management — Analyst
Okay. Thanks.
Operator
Thank you. The next question is from the line of Bino Pathiparampil from InCred Capital. Please, go ahead.
Bino Pathiparampil — InCred Capital — Analyst
Hi. Good evening. Just a follow-up question on the biosimilar CDMO. In an answer to one question, you said you have already spent about INR300 crores of capex on that. And in another situation, you said we are still pretty far away from any visibility of revenues. So, is there a mismatch there when you do the capex in anticipation of something earlier? Can we have some clarity on that?
Srinivas Sadu — Managing Director & Chief Executive Officer
In fact, not just biosimilar side, even when you start a plant, it will take a couple of years to start generating revenue. It’s just that now we’re in the — even adding lines to the same facility, you will feel that when you had started the Pashamylaram plant for first two years, it’s not even commercialized by the time you invest INR300 crores, INR400 crores. So, that’s the nature of the business we are in. So, by the time you install, validate, apply for an approval, it takes so much time, and also you have to generate business. So, in a normal injectable business, if you go back to 20 years back and take some time for that, but once you are into that space and you’re supplying products, then it’s more — you have that opportunity to, what do you call, plan your expansion and all. And now we are getting into a new space and now we have started doing business development. And this is like a situation where without a facility, companies won’t come to you to give business. And so, we have to build that and then approach the customers to — for the business development. That’s how it works.
Bino Pathiparampil — InCred Capital — Analyst
Understood. And your first target would be what? This biosimilar companies which we already have products that are selling in the semi-regulated markets, or are they completely new products or are they companies who have products already in the regulated markets? Who would be your first target sets?
Srinivas Sadu — Managing Director & Chief Executive Officer
I think, mostly these are development companies who have developed the cell lines or the clones, who are looking at taking clinical batches and getting the scale-up batches. That’s one because it’s easier to attract than the larger biosimilar companies who have already got their products approved in particular sites and transferring from those sites to this site will take time. Number one. Number two, unless you have experience in delivering certain projects, no one wants to take a risk of transferring a product to you. So, you need to establish that credibility before you really get to biologics or biosimilar products which are active in some markets. So, it’s more development companies which are new and then build up the business based on that.
Bino Pathiparampil — InCred Capital — Analyst
Understood. One final question, sir. So, for the nine months, we have done only INR125 crores, and for the full year, you said INR200 crores to INR250 crores. So, are you going to do the entire capex that we did in nine months during the next three months or in this quarter?
Ravi Shekhar Mitra — Chief Financial Officer
It depends on the timing of the PO and what stage the project equipment installation, etc., is there. So, it’s not being like a pro rata basis every quarter.
Bino Pathiparampil — InCred Capital — Analyst
Okay. Great. Thank you very much.
Operator
Thank you. The next question is from the line of Mayur Shah from Marine Technologies [Phonetic]. Please, go ahead.
Mayur Shah — Marine Technologies — Analyst
Hello. Am I audible?
Srinivas Sadu — Managing Director & Chief Executive Officer
Yes, go ahead.
Mayur Shah — Marine Technologies — Analyst
Yeah. Good evening to the management of Gland Pharma. I have a simple question in that, you have such good products and looking at certain products, your supply gets hampered, so why can’t you all put up a plant there, I mean, we all feel where it is — you can in-house plant where you all can manufacture in house like stoppers, syringes, whatever raw material which is very much crucial for your sales. Would that help you all to get over the supply constraint? That’s it.
Srinivas Sadu — Managing Director & Chief Executive Officer
But we do work on key APIs. For example, for most of our key APIs, we do manufacture. That’s the technology or R&D we can do. But for stoppers and the others, that’s not the area where we have expertise, right? Those are completely different technology. So, we can’t really enter those markets now.
Mayur Shah — Marine Technologies — Analyst
Yeah. But then still the sales are being affected because of these small things and this is not such a big product where you all don’t have the expertise to manufacture as if — because…
Srinivas Sadu — Managing Director & Chief Executive Officer
[Speech Overlap] stopper manufacturing and glass manufacturing is not our area of expertise, so we can’t really manufacture those. And the scale at which these are manufactured over, I know, this is like a situation once in a lifetime, right, COVID is like once in lifetime where it’s gotten. And they are expanding capacities. And you’ll will never be able to compete even if you start a small stopper manufacturing unit, so…
Mayur Shah — Marine Technologies — Analyst
[Speech Pverlap]
Srinivas Sadu — Managing Director & Chief Executive Officer
Yeah. Go ahead.
Mayur Shah — Marine Technologies — Analyst
So, you mean to say that these supply glitches will not happen further? It is once in a lifetime kind of a situation?
Srinivas Sadu — Managing Director & Chief Executive Officer
Yeah. I mean, we’re in this space for like more than 20 years, so we are facing this first time. And that’s because so many stoppers and these have diverted to vaccine production, which is like once in a lifetime, right, billions of units have to be produced and all these manufacturing got diverted to that requirement.
Mayur Shah — Marine Technologies — Analyst
Okay. And, sir, one last question is that, sir, any focus on Indian pharmaceutical sector? I mean, India — is Indian market quite good for you? I mean, are you planning to increase the market share in India since it’s just 9% of your revenue base?
Srinivas Sadu — Managing Director & Chief Executive Officer
So, India, our focus is more on how we can get into more CMO side of the business, because most of the critical care products what are in India, most of it falls under the price control. And that’s not really lucrative for us with the facilities what we have. And that’s why we are selective in choosing products for Indian market. So, unlike solid orals where it’s more branded and still you can get some businesses and margins where you have branded, but this is more a critical care hospital product where it gets into tenders and it’s under price control by the government.
Mayur Shah — Marine Technologies — Analyst
Okay. Thank you so much and all the best for your future endeavors. Thank you.
Srinivas Sadu — Managing Director & Chief Executive Officer
Thank you.
Operator
[Operator Closing Remarks]