Innova Captab Ltd (NSE: INNOVACAP) Q4 2025 Earnings Call dated May. 20, 2025
Corporate Participants:
Unidentified Speaker
Ayush Kumar Garg — Head, Investor Relations
Vinay Kumar Lohariwala — Managing Director
Lokesh Bhasin — Chief Financial Officer
Analysts:
Unidentified Participant
Amey Chalke — Analyst
Vidit Shah — Analyst
Miten Lathia — Analyst
Divesh Tated — Analyst
Harsh — Analyst
Divesh Tated — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Innova CAPTAP Limited Q4 and FY25 earnings 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. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. Before we begin a brief. This conference call may contain forward looking statements about the company which are based on beliefs, opinions and expectations of the company as on date of this call.
These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. I now hand the conference over to Mr. Ayush Kumar Garg, Head IR. Thank you. And over to you sir.
Ayush Kumar Garg — Head, Investor Relations
Thank you. Saisha. Good morning everyone and thank you for joining us on the earnings call today to review the operational and financial performance for Q4 and FY25. We have with us Mr. Vinay Lohariwala, Managing Director, Mr. Lokesh Basin, Chief Financial Officer SGA, our investor relations Advisor. We trust that you have had a chance to review the financial results and investor presentation which have been made available on the stock exchanges as well as. On the company website. With that I’ll now hand over the call to Mr. Vinay for his opening remarks. Thank you. And over to you sir.
Vinay Kumar Lohariwala — Managing Director
Thank you Ayush. Good morning and thank you all for joining us on today’s admin call. Let me begin by saying that I am pleased with the way Innova Captive has performed throughout the year. We close F25 with total revenue of rupees 1244 crore delivering strong growth of 15%. For Q4 the revenue stood at 315 crore reflecting a robust year on year growth of 20%. A major milestone for us this quarter was the launch of commercial production at our new facility in Kathwa Jammu. I would like to make a moment to extend my sincere gratitude to the entire execution team whose dedication was instrumental in bringing the critical process project to successful completion.
Their relentless efforts, coordination and commitment to excellence played a key role in ensuring that we met our goals on time and to the highest standard. We have started offering new products and doses form from this plant and the initial traction has been increasing. This give us added confidence in the long term potential of this facility. Let me now take you through the performance highlights across the each of our business area. CDMO Business Our CDMO business made significant strides this year. We expanded our client base to over 200 customers which includes some of the largest player in the Indian pharmaceutical market.
Our product portfolio has grown from 2,900 plus products last year to over 3,300 this year, a clear testimony to our commitment to quality, innovation and customer centricity. The business recorded a year on year growth of 12% in Q4 and 6% for the full year. Going forward, our strategy will center on acquiring new clients while also increasing wallet share from our existing partners. New product and dosage form launches from the Qatwa plant are expected to further accelerate our growth in this area. Domestic Branded genvic Our domestic branded genvic business delivered a stellar performance with year on year growth of 30% in Q4 and 21% in full year.
We continue to expand our distribution network which now includes over 6,000 distributor up from 5,000 last year. We also significantly enhance our market reach now touching more than two 20,000 pharmacy and stockies compared to one 50,000 in FY24. Our product offering in this business increased to over 750 up from 600 plus last year. Our focus in this area remain on supporting existing distributor retailer while engaging new partners and channels to boost market presence. International Business on the international front, Innova now has a presence in 30 plus countries including regulated markets such as the UK and Canada.
This presence was 25 plus countries last year. The business posted solid year on year growth of 47% in Q4 and 25% for the full year. Looking ahead, we will continue to expand our footprint in both regulated and semi regulated market while also broadening our product offering to cater to diverse international demands. Saron closed this year with revenue of rupees 197 crore. Saron has a robust presence in regulated market and supplies both formulation and API to some of the most well known pharmaceutical companies globally. We aligned strategic initiative and leveraging synergy with Innova captech Saron is well positioned for sustained growth and enhanced value creation in the year ahead.
Our strategic initiative have started taking shape and we are well positioned to enter the next phase of our growth journey. The newly commissioned Kathwa plant is set to unlock a broad spectrum of opportunity expanding our product portfolio across business area, fostering new partnership and deepening engagement with existing client through enhanced wallet sale. We are already witnessing strong interest from our current and prospective partner reforming the potential of this facility. Our commitment to innovation is equally reflected in our R D infrastructure. Our dedicated laboratory and pilot scale manufacturing setup in Bhagti, Himachal Pradesh is recognized by DSIR Department of Science and Industrial Research.
Further, our upcoming facility in Panchapula Chandigarh will strengthen our capability with a focus on the development of complex generic and differentiated formulation, an important step in enhancing our innovation pipeline. With multiple growth levers in place including capacity expansion, a broadening product base, deepening market penetration and a robust R and D engine, we are confident in our ability to deliver long term value to our all stakeholders. We are proud to the progress we have made and remain committed to executing our strategic roadmap with discipline and agility to drive sustainable growth across all verticals. Thank you once again for our continued support and trust in Innova Captive.
I now hand over the call to Mr. Lokesh to take you through the financial performance in more detail.
Lokesh Bhasin — Chief Financial Officer
Thank you sir and good morning everyone. I will now take you through the Financial Highlights for Quarter 4 and Full Year FY25 Quarter 4 FY25 Our consolidated revenue stood at 314.7 crores registering year on year growth of almost 20%. CDMO clocked 154.8 crores of revenue with year on year growth of 12% supported by sustained traction in existing products and the contribution that we got from our new Kathwa Jammu facility. Domestic branded generic business delivered a robust growth of 30% to rupees 61.7 crores fueled by expanded product portfolio and increased market penetration. International branded generic business delivered year on year growth of 47% to rupees 43.4 crores driven by product and market expansion.
Sharon recorded a revenue of rupees 54.9 crores with year on year growth of 15% which was chiefly volume driven. We witnessed decent growth in our absolute EBITDA which was rupees 51.1 crore vis a vis rupees 43.8 crore of previous year. Previous quarter Quarter 4 FY24 recording a growth of 17%. This was largely driven by improved gross conversion. The EBITDA margin for the quarter was 16.2%. The PAT rose by 3% year on year to 29.6 crore of quarter 425 PAT. After absorbing the impact of depreciation and finance cost accruing from the Katwa Jammu plant which was commercialized in January 2025.
Consequently, PAD margin stood at 9.4% on a full year FY25 basis. The total revenue from operations grew 15% at rupees 1243.7 crores. Led by volume growth across business areas. The business mix for the year was CDMO 53%. Domestic generation business was 18%. International brandy generics was 13% and Shareon contributed 16% in absolute terms, business area wise revenues for the financial year were CDMO rupees 659.9 crores. Domestic generic business rupees 230.7 crores. International generic business rupees 156.3 crore and Sharon 196.8 crores. Coming to profitability, EBITDA registered stellar year on year growth of 19% to 198.2 crores.
Almost touching rupees 200 crores. Owing to improve gross contribution, EBITDA margin also increased by 50 basis point to 15.9%. The PAT witnessed robust growth of 36% to rupees 128.3 crores. Mainly driven by higher EBITDA coupled with reduced finance costs. PAT margins improved by 160 basis point to 10.3%. Our balance sheet has also shown continued resilience with the strategic decision taken over last few years now being coming now being in execution. We believe our performance metrics will further improve in coming years. With this we would like to conclude the presentation and open the floor for question and answers.
Thank you very much.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Amit Chalke from JM Financial. Please go ahead.
Amey Chalke
Yeah, thank you for taking my question and congrats to the management on good set of numbers. Sir, I have first question on the Jammu plant. Is it possible to give how much was the contribution for this quarter and any change in guidance for the next year for the revenues coming in from Jammu plant.
Lokesh Bhasin
Hi, good morning Ame for in the during the quarter four FY25 see our Jammu plant start commercialized operation from 14th of January 2025. And for this quarter 425 Jammu plant contributed a revenue of around 36 crores. And coming to the next question. So as of now we maintain our guidance of that Jammu plant is poised to achieve a revenue of around 400 crores for this financial year. FY26.
Amey Chalke
Okay. And second question I have is on the cash flow this year our operating cash has increased with more than double digit but working capital has eroded. The cash from as in the cash from operation has gone down year on year. So any reason for the working capital increase or you expect it to normalize in the next year?
Lokesh Bhasin
Yes, Amin. So you are right that this year our working capital has. Working capital investment has slightly increased. So there are major two reason for it. Number one is a increase in operations. And the working capital required to feed that increase in operations was invested. And at the same time since Jammu has just started, so that initial working capital to start the plant was required. So we are hopeful that in coming times though this working capital will return back to the normal days.
Amey Chalke
Sure. Okay, thank you. I will join back. Thank you.
Lokesh Bhasin
Thank you.
Vinay Kumar Lohariwala
Thank you.
operator
Thank you. The next question is from the line of Vidit Shah from Spark Capital. Please go ahead.
Vidit Shah
Hi. Thanks for taking my question. My first question was on the Jammu plant. Because of the tensions going on in the state right now. Are we seeing any impact on our operations out there currently?
Vinay Kumar Lohariwala
So as you all are aware that there was blackout in Chile entire almost north western India including the our ho location say Chandigarh. So the tension was there that facility near border. So there was some restlessness. But we have the full faith in our Indian army and our government and everything goes in a well mannered. And in future also we have the full faith in our army and the government and fully nothing wrong will happen.
Vidit Shah
But in, in the current quarter we’ve just seen a couple of days of blackout and no major impact on operations.
Vinay Kumar Lohariwala
So there was no shutdown in our facility for even a single day.
Vidit Shah
Okay.
Vinay Kumar Lohariwala
We work as usually. There was no hurdle to our facility.
Vidit Shah
Okay, understood. My second one was, you know, on the gross margin that we’ve seen improve both YOY and I think over the last couple of years, this is the highest ever gross margin that we reported. So can you help us understand what is driving this improvement in gross margins and what would be the sustainable level going forward?
Lokesh Bhasin
So the gross margin improvement is mainly due to a couple of reasons which is our operational efficiency, a better product mix bearing the best optimum resources, optimal use of the resources that we are having. So these are the soft and the subjective reasons why our gross margins are increasing coupled with with the decent, the best product mix that we have yet. And in coming times also we estimate that this is going to maintain a trajectory.
Vidit Shah
Okay. But when we talk about segmentally, would margins be similar across let’s say Sharon and and the CDMO business or in terms of gross margins or would there be a big deviation in these.
Lokesh Bhasin
So with it we normally do not track gross margins and margin profile at our business areas level.
Vidit Shah
Okay. No, I. I mean Shannon is A separate entity itself. Right. So that’s why I was asking whether compared to you know, how Shannon’s cross market share.
Lokesh Bhasin
So yes, you’re right. So if I talk about ICL manufacturing capability and Chevron manufacturing capability. Yes, Chiron is having a slightly better gross margin but they are having a different target market because they are majorly into regulated market in exports. So yes, they are having slightly better gross margin profile than ICL manufacturing capabilities.
Vidit Shah
Okay. And just the last one on Sharon, you in your opening remarks mentioned that you know, it’s well positioned for growth and value creation going forward. If you could just shed some light on, you know, what are the management’s plans with regards to driving growth in Sharon and what geographies and products are likely to drive growth. That’s it for me. Thank you so much.
Vinay Kumar Lohariwala
Yeah. So in Chiron that we are currently say most of the revenue is coming from Europe and Canada or the other regulated market like Australia. And we will focus in Saron in all these market we are expand, try to expand the wallet share from the existing customer and the onboarding of the new customer in the regulated market.
Vidit Shah
Okay, thank you so much for answering this. Best of luck and I’ll get back.
Vinay Kumar Lohariwala
Thank you.
operator
Thank you. Participants who wish to ask a question may press star in one at this time. The next question is from the line of Avnesh from Vekraya. Please go ahead.
Unidentified Participant
Hi, thanks for taking my question. I just have a couple one lokenesh for you. I was if we have to estimate, let’s say the volume growth in Baddy which is ex Jammu and you said that Jammu contributed 36 crore. If I remove 36 crores from the standalone PNL both from the top line and from the gross profit it seems like the baddy volume growth was around 12 to 13%. Is this calculation right or is there some error in it?
Lokesh Bhasin
So see if I talk about at a full year level ICL growth was ex Jammu was around 7% at a revenue from operation level.
Unidentified Participant
No, I was more interested in the quarter.
Lokesh Bhasin
So if I talk about quarter four if I exclude my ICL Jammu revenue part. So the growth was around 4 to 5% from year on year basis.
Unidentified Participant
Yeah, that’s the revenue. So I was looking at. I mean if you remove the Jammu contribution.
Lokesh Bhasin
So actually see, I would just like to highlight that. See we cannot see ICL Badi operation in isolation. As we brief earlier in our, in our previous calls also that there is certain level of calibration at initial level wherein we are moving our revenue from our Existing SIFA facility in Badi to our new coming facility in Jammu which of SIFA block. So there is a certain element of cannibalization from birth to Jammu at an initial period itself. So that impact is also reflects in our icl. But the operation if you see it is standalone. But as I submitted it cannot be seen isolation per se.
Unidentified Participant
Okay, understood. If we look at. Let’s say when you. When you guide for 400 crores revenue from Jammu, that is over on top of the non Jammu revenues that we closed on this year. Right. So your Non Jammu revenues this year were close to about 1208 crore. What kind of growth can we expect in this? And then is 400 crores over on top of that.
Lokesh Bhasin
So you are right. So out of my 1244 crores, my non Jammu was around 12008 crores.
Unidentified Participant
Yes.
Lokesh Bhasin
So the way I look at it, we are maintaining that we should be growing in early teens for our existing facilities. Plus over and above the revenue. Over and above the revenue that we’ll get from Jammu plant.
Unidentified Participant
That’s right. So if you assume like about let’s say early teen for X Jammu business and the 400 crore over and above that. That’s. That’s how we should understand it.
Lokesh Bhasin
2.
Unidentified Participant
Okay, last question from my side. How was the GST benefit accounted in this quarter? I mean the benefit is in gross profit or in the other income. Can you please help us understand that?
Vinay Kumar Lohariwala
Yes.
Lokesh Bhasin
So the way we accounted for with the blessings of statutory OITAs, if we have recorded our GST benefit as other operating income as a part of revenue from operations.
Unidentified Participant
This is very clear. Thanks. Thanks Lokesh. And thanks.
Lokesh Bhasin
Thank you sir.
Vinay Kumar Lohariwala
Thank you.
operator
Thank you. Participants who wish to ask a question may press star in one. The next question is from the line of saket from Sagari Capital. Please go ahead.
Unidentified Participant
Hi. Am I audible?
operator
Yes sir. You’re audible.
Unidentified Participant
Yeah. So sir, my first question is pertaining to the CDO segment. So it has shown around 6% of growth. So can you help me break up this into volume and say price growth terms.
Lokesh Bhasin
So my major revenue growth for CDMO business or for a manufacturing capability business as mainly by driven by volume growth.
Unidentified Participant
And what to do with that, sir? Because I think we have seen that API prices have been down, trending. So was it like, you know, there was price degrowth as well or what was the breakup?
Lokesh Bhasin
If I talk about an year on year basis other, I would like to emphasize that if I see my growth at a volume level I would like to see it in manufacturing capability level instead of a business area level. So on a full year level we have got a volume growth of around 7 to 8% and which is the growth that we have recorded at our ICL manufacturing capability level. So whatever price impact was there. So due to product mix and other variable reasons during the year it has been knocked off. There may be a slightly variation of 1 or 2% but on a major league it is driven by volume growth.
Unidentified Participant
Okay, thanks for confirming this. On top of that your domestic branded business generics has also done quite well now at 21%. So how do you break that up into say typical in IPM drivers like how much was NI contributing, how much was price growth and how much was volume growth.
Lokesh Bhasin
So even in domestic bendigenry the major growth has driven by our volumes through new products and penetrating into new markets or getting deep into our existing markets.
Unidentified Participant
Okay, and sir, what would be the guidance for domestic branded generic business say for the coming up? Because it would say behave slightly differently from the typical manufacturing business. Right. So any different color or growth number that you might have want to share on this for this segment.
Lokesh Bhasin
So the way we see it, it should be in the line with overall company growth itself.
Unidentified Participant
Okay, so which is mid teens that you said, right? 12, 13%. Is that the fair one? Non Jammu that you just mentioned? Is it?
Lokesh Bhasin
When I see Jammu. See there are two I would just like to explain on that part. See, business area is my front end which reverse my sales. At the same time Jammu is a manufacturing capability. So my manufacturing capability of Baddi as well as Jammu feeds my all three business areas which is cdmo, domestic Bendigenrics and international Bendigen risks. So the way my badi manufacturing capabilities working to feed all these three front end business areas the same way Jammu is also coming up and it will feed my all three business area. Either it’s CDMO domestic branded generics or international branded generics.
Unidentified Participant
Got it. So sir, for domestic branded generics you don’t source anything from outside because there might be some product where you may not have enough scale. So is like 100% is in source for both international as branded as well as domestic branded.
Lokesh Bhasin
So talking about domestic bendigendries. Yes. There is certain element of items which normally INOVA do not produce that we procure from our third party outside vendors. But that is not that much. It’s hardly 20, 25%.
Unidentified Participant
Okay, got it. And so in terms of say just order of say profitability. So like is it like you know, Sharon would be the highest and then followed by branded generics and then CDMO would be the least profitable within these four segment. Is it a fair say order or how would that be?
Lokesh Bhasin
As I submitted earlier also normally we do not track business margins at our business areas level. But if I talk about at a gross margin of a manufacturing capability. Yes. Share on being in regulated market, they slightly, they generate slightly better gross margins.
Unidentified Participant
Okay. Okay. So thanks, thanks sir for patiently responding and I appreciate this and best of luck sir.
Lokesh Bhasin
Thank you sir.
Vinay Kumar Lohariwala
Thank you.
operator
Thank you. Before we take the next question, we would like to remind participants that you may press star in one to ask a question. The next question is from the line of Miten Lathaiya from Fractal Capital Investments. Please go ahead.
Miten Lathia
Good afternoon sir. Three questions on Jammu. First. While you recognize the GST benefit as other operating income, could you clarify if it is a amount that is paid and then claimed as refund or doesn’t need to be paid at all, it directly is accounted for as income. Second, you know our current mix on the CDMO side is, I understand that it’s around 50, 50. Why have you chosen to increase the mix of acute at the Jammu facility? If you could spend a couple of minutes to thought process around that. And number three, you know you guided for about 400 crores of incremental revenue from Jammu in FY26.
If you could sort of help us understand, you know, how is it that you have that visibility of that revenue.
Lokesh Bhasin
Answering to your question number one. So the way this GST incentive works is that the we pay and we take the input credit of GST as for normal business practice, the way it is done for other manufacturing areas. But as we are supported by a central government scheme. So whatever GST that we have paid on our total domestic sales at the end of the quarter we will file a separate refund return to central government to claim that incentive back from central government. So these are two process. Number one is the normal GST process will remain same as other business, other geographical location for a manufacturing business.
At this step is that whatever GST that we have paid on sales invoices of domestic sales, we will file the return refund return to central government at a quarter end. Hope this satisfy your question.
Miten Lathia
Yes sir. Okay, thank you.
Vinay Kumar Lohariwala
Yeah, so the second question regarding that the selection of product and facility. So in Badi say we are already into the general facility and cephalosporin facility. And this is extension of our product basket in the category of the other antibiotic like beta lactam and penum and then a general category of LVP red spools is there. And then the waterfall injection. So the strategic discussion decision is taken based on the requirement in the market and our present capability.
Miten Lathia
And the third bit on the visibility around the 400 crore number.
Vinay Kumar Lohariwala
So as on date we are very much confident that this number is achievable. And being four facility. So say. If we say like 400 crore sometimes it look quite aggressive. But if we divide in the four plant. So say it’s not one one facility but there are four blocks. So it’s like 100 crore. And if each quarter, if we see then it come out to be let’s say 25 crore each block. So then the number becomes small. So number. The. The number is given on the fair assessment and estimation. And that’s why we are giving that number.
And we are very confident to achieve that.
Miten Lathia
Sir, I had a couple more. I’ll come back in the queue. Thank you, sir.
Vinay Kumar Lohariwala
Yeah, thank you.
operator
Thank you so much. The next question is from the line of Divesh Tattered from Pinterest Capital. Please go ahead.
Divesh Tated
Good morning, sir. Thank you for the opportunity. Am I audible?
Lokesh Bhasin
Yes, please.
Divesh Tated
Yeah, so. So I guess so. The last second last quarter you have guided for 2500 crore of revenue in next three years. So are we still on that? Are we confident on that?
Lokesh Bhasin
Yes, Divesh. So where we seek to over long term we are very much confident we should be maintaining the CAGR of 25% revenue growth over next three years.
Divesh Tated
Okay. Okay, sir. And sir, my next question is regarding as and when we utilize our Jammu plant more better. So our margins and even the GST. Incentive that we have a margin getting better in next three years to I guess 17%. Is that right?
Lokesh Bhasin
So why while we will not like to comment on the number exact number. But yes, by increase of operations getting benefit of operate, operating leverage, the GST benefit. Our operations efficiency is coming due to economies of scale and getting new products. Yes. The margin is bound to increase.
Divesh Tated
Okay. Okay. Thank you, sir. Thank you so much. That’s it from my.
Vinay Kumar Lohariwala
Thank you.
operator
Thank you so much. Participants who wish to ask a question may press star in one at this time. The next question is from the line of Vidit Shah from Spark Capital. Please go ahead.
Vidit Shah
Hi. Thanks for the follow up. Just one clarification, sir. This 400 crore number that you guided from Jammu. Does that include the GST benefit And if so how much for that?
Lokesh Bhasin
Yes. So when we say the number. Yes. Normally as it is a part of our other operating revenue that GSC number is included in our overall 400 crores as of now.
Vidit Shah
And would you be able to quantify that number?
Lokesh Bhasin
So it should be in the range of 30 to 35 crores.
Vidit Shah
Okay, understood. And the. The 36 crores of revenue that we did this in 4Q. Are we. What. What level are we breaking even at? Are we breaking even yet?
Lokesh Bhasin
Can you please. Can you please repeat your question? You are not audible. Sorry,
Vidit Shah
what. What level of operations would you break even at at Jammu?
Lokesh Bhasin
Okay, I think we should be a bit positive. EBITDA neutral. Sorry, EBITDA neutral by around sale of 50 to 55 crores.
Vidit Shah
Okay, got it. Thank you so much.
operator
Thank you so much. The next question is from the line of Harsh from Bandhan emc. Please go ahead.
Harsh
Yeah, thank you. Good morning. Just one or two quick clarifications. Can you help us understand the API pricing scenario as of now? I think so. There was some related question as well earlier. Most of the CDMO growth is volume according to volumes. But just from a fourth quarter perspective, if you could help us understand at a broader scale and as things stand today at least from an API pricing perspective how things are and anything specifically from a citrus pooling perspective.
Vinay Kumar Lohariwala
So. But then. Sorry. Hi Harsh. So if I talk about quarter four and as of now status at a broad level, at a BT average level, I think more or less the prices are more or less at a flat level. There may be some prices up and down. But if I see from a company’s perspective they are not having just as much impact and of now at the current level.
Harsh
Sure. And anything incrementally from Cephalosporin or.
Lokesh Bhasin
Sorry, I didn’t get your question.
Harsh
Pricing in terms of the Cephalosporine as well. They are also broadly consistent on a quarter, on quarter basis or anything incremental.
Vinay Kumar Lohariwala
So in Cephalosporin there is slight. The prices are slightly lower side as well as in the beta letter. But overall if we see this, one thing is that it is difficult to measure and overall we see that there are few area where the price has been increased and there are few area where the price has decreased.
Harsh
Sure. And lastly from an FY25 perspective, CDMO is somewhere around 6 to 7% growth rate. So what would be the volume number on a broader basis for this entire year? I mean understand there have been introductions and pricing, but just that volume number. Would it be a double digit volume number? Early teens, mid teens volume number.
Lokesh Bhasin
You’re talking about volume growth? Are you talking about volume growth?
Harsh
Yes sir. Volume growth for FY25 for the CDMO business overall reported number is 6 to 7% growth for FY25. What would be the volume growth number? Would it be like close to high single digits or low double digits?
Vinay Kumar Lohariwala
It’s slightly better than the reported number growth. So that’s why we are saying that even the for the full year the price impact is flat. So it just not only the function of the price growth once we capture the volume versus average price. So then the product mix change is also a factor.
Harsh
Okay, so broadly we should work with a similar number for the volume growth as well as compared to the report.
Vinay Kumar Lohariwala
Yes, yes. So better than better than the price, the better than the value growth. Volume growth is like 1 or 2 percentage points better.
Harsh
Okay. Okay. All right, sir. Thank you. Thank you.
Vinay Kumar Lohariwala
Thank you. Thank you.
operator
Thank you. The next question is from the line of Ame Chalke from JM Financials. Please go ahead.
Amey Chalke
Yeah, thank you for giving me opportunity again. I just had one question on the upcoming R D facility in Panchkula, Haryana. It says that we would like to develop generic and complex generic products. And some of the products are like immediate release super bioavailability capsules, nano size formulations etc. So what are the markets are we going to target with these products?
Vinay Kumar Lohariwala
As you know that at Saron we are working in the regulated market space. And the thing was that in Saron as we don’t have any independent R and D setup, so where the Innova is helping, we are taking the regulated market project and developing at the Innova RD and then we are doing the exhibit bets at Cerrone to file in the regulatory market. So one is that, the other one is that even we are open for the domestic market and the row market. So overall the product, once the product is developed it can can be filed in the various market as per the requirement.
Amey Chalke
Right. So these will be our own IP products. Even for regulated markets you need to say
Vinay Kumar Lohariwala
yes. Yes. So in regulatory market there are the two type of business. One is the tech transfer, the other one is this one where we have or on IP and on developed dossier and then we have the commercialization.
Amey Chalke
But the commercialization will happen to partners. You mean to say that we won’t be doing it on our own.
Vinay Kumar Lohariwala
Yes, yes. So the we have the we choose them or the we collaborate with the partner. Then the filing is being done. After that once the required approvals is received, then we can do the commercialization. So after acquiring the Saron we have done like a few of the product from the serum to the regulated market. On this theme only.
Amey Chalke
Right. And is there supposed to be an impact on overall company margins on increased spend on this RND facility?
Vinay Kumar Lohariwala
So let’s say it helps in, in the incremental business but being say at a 1200 crore in future, let’s say if we, we reach towards 2500 crore then these business is like 50, 50 crore, 100 crore will have the less impact than the overall margin.
Amey Chalke
Got it. So you don’t expect immediate impact. Maybe once the sale is there on the top line then the impact would be negligible.
Vinay Kumar Lohariwala
Yes, yes, yes. So overall our strategy is to efficiently effectively use our manufacturing facility with a more value added product in a, in, in a regulated and semi regulated market. So our R and D facility will help in achieving that.
Amey Chalke
So thank you so much. I will join. Thank you.
Vinay Kumar Lohariwala
Yeah, thank you.
Lokesh Bhasin
Thank you sir.
operator
Thank you so much. The next question is from the line of M. Latia from Fractal Capital Investments. Please go ahead.
Miten Lathia
Yes, thank you again. Just one question on Sharon. You know while you said that in regulated markets you want to broaden the customer base but we’ve had almost four years of flat revenues at Sharon. So is the current product portfolio something that can drive a three year sort of growth outlook or if you can sort of spell out what you are thinking about that business over the next three years or so?
Vinay Kumar Lohariwala
Yes. So as you aware that Saron being in cirp there were no new initiation, new steps has been taken. Once we integrate one and half year, one and I think June, one and half year back, then we start taking new projects and all that. So that will mature in the coming, coming quarters and coming year as there is a long lead time for long gestation time for in a regulated market. So we see that all positivity should reflect in this upcoming year.
Miten Lathia
Okay, just to be clear, you are saying that in these two existing markets of your, you know, Europe and Canada, you want to deepen the relationship with the existing customers by offering them more products. Is that what you had mentioned earlier or.
Vinay Kumar Lohariwala
Yes, yes, yes. So onboarding of the new customer as well as onboarding of new product with the existing customer or let’s say what use we used to do four years, five years back, revival of that business is also the part of strategy in Sharon.
Miten Lathia
They have actually lost products within customers or they’ve lost customers altogether in the last four years.
Vinay Kumar Lohariwala
Let’s put in this way, the company being in CIRP there was some hurdle in acquiring the new business and all that. So once the Inova name is there, the customer is also having a good confidence and all supply side hurdle has been removed. Right. So we we are focusing on that business and doing our all efforts to revive and grow at a positive growth rate and you are as you are saying that that is absolutely correct that revenue is almost flat but if you see the EBITDA and profit margin that has been consolidated in a very good manner.
Miten Lathia
Understood sir. Thank you.
Vinay Kumar Lohariwala
Thank you. Yeah.
operator
Thank you. The next question is from the line of Diresh Tatir from Fintris Capital. Please go ahead.
Divesh Tated
Yes sir. Thank you for the opportunity again I just had one last question sir. I wanted to know what could be. The run rate for depreciation going forward?
Lokesh Bhasin
So over and about existing depreciation rate the Jammu plant would be having a deposition of around 24 to 25 crores per annum.
Divesh Tated
Okay. Okay. And our existing business will not have any such or they will have depreciations.
Lokesh Bhasin
They would continue the existing depletion rate. There may be certain maintenance capex but the depression rate would be in the same lines that they are having right now.
Divesh Tated
Okay. Okay. Thank you sir. Okay.
Lokesh Bhasin
Thank you.
operator
Thank you so much. As there are no further questions from the participants I now hand the conference over to management for closing comments.
Vinay Kumar Lohariwala
Thank you everyone for joining us for the earning call. We appreciate your time and showing interest. In case of any queries you can get in touch with our investor relation team. We look forward to meeting all of you over the next call. Thank you very much again thank you.
operator
On behalf of Innova CAPTECH Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Sam Sa.