Solara Active Pharma Sciences Limited (NSE: SOLARA) Q4 2025 Earnings Call dated May. 15, 2025
Corporate Participants:
Unidentified Speaker
Abhishek Singhal — Investor Relations Consultant
Sandeep Rao — MD and CEO
Saurabh Kumar — Chief Financial Officer
Arun Kumar — Founder and Promoter Director
Analysts:
Unidentified Participant
Akash Jain — Analyst
Anand Mundra — Analyst
Jasdeep — Analyst
Nigel Mascarenhas — Analyst
Abhishek — Analyst
Satish Srinivasan — Analyst
Darshil Pandya — Analyst
Niriksha Makam — Analyst
Nishant Bhatt — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Solara Active Pharma Sciences Limited Q4FY25 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. 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. I now hand the conference over to Mr. Abhishek. Thank you. And over to you sir.
Abhishek Singhal — Investor Relations Consultant
Thank you Ziko. A very good afternoon to all of you and thank you for joining us today for Solara Active Pharma Sciences earnings conference call for the fourth quarter and full year ended financial year 2025. Today we have with us Arun Solara’s Founder and Knowledge Director Sandeep Rao, MD, and CEO and Saurabh Kumar, CFO to share the highlights of the business and financials for the quarter. I hope you’ve gone through our results release and quarterly investor presentation which have been uploaded on our website as well as stock exchange website. The transcript for the above call is available in a week’s time on the company’s website.
Please note that today’s discussion may be forward looking in nature and must be viewed in relation to risks pertaining to our business. After the end of this call, in case you have any further questions, please feel free to reach out to the Resolution team. I now hand over the call to Arun to make his opening remarks.
Arun Kumar — Founder and Promoter Director
Thank you Abhishek and good afternoon everybody and thank you for joining us today. I’m taking this opportunity to introduce our new leadership team that we brought in in February. Both Sandeep and Sharat will introduce themselves and while it’s been a very difficult year from an operating standpoint for Solara, especially given where we were in FY24, I believe that in spite of having missed the guidance both on revenue and ebitda, we have come back strongly as a company very focused on operational excellence, compliance, track recording, getting our cost structures ready. And while we were heavily impacted by the ibuprofen franchise, that has been our mainstay.
I think the growth in our other businesses are more, more or less made up for the negativity around the ibuprofen loss of sales and our focus on staying invested on high gross margin business. Shifting the company back from a very low regulated market to a now very high and historically higher than our average regulated market play has been our primary focus for the board and for me as the promoter to stay invested and continue to Be excited about the journey that Solara has ahead of it. And now with the new management team, I’m very confident and very pleased that we are on the right track.
The last four quarters has been important. Although growth has been tepid, it is the first time that all our four quarters delivered EBITDAs. We were definitely hoping for a much stronger Q4 outlook, but having we decided not to compromise on our margin focus, which has played through very well and I think from here we can grow. We have an outlook which supports growth and revenue. So we hope to break the tepid or flat growth that we had in FY25 to get back Solara to a more solid footing. I’m also very pleased with the improved focus on our balance sheet, cost of money and our network optimization.
I think the teams across the board, including some of our existing leadership, state throughout the year to focus on those key outcomes. Consequently, we’ve got some great FDA outcomes in our facilities. All our plants are now in a good state of control, as always has been the case. And I think this has been a year of reset. Did we hit all the numbers and the revenue and ebitda? Obviously we are disappointed, but I think it has got all the elements of a very successful FY20 fix. Going forward, we’ve decided not to give a guidance. We give more like an outlook and we believe that we need the whole year to constantly perform on our balance sheet, improve our free cash generation and then start focusing on aggressive growth.
So with this, I request Sandeep and Sharad to take over the meeting.
Sandeep Rao — MD and CEO
Thanks Arun and good morning, good afternoon and good evening and thank you all for joining in today for our Q4 25 earnings call. I sincerely appreciate your presence on this call. To introduce myself, I am Sandeep Rao and I have taken charge as managing director and CEO of Solara Pharma from 21 February this year. At the outset, I want to thank the board as well as Arun for providing me this opportunity to lead Solara as we enter the next phase of our journey, which is pivoting to growth from Reset. To give a little more about my background, prior to this, I spent more than 25 years in the pharma space at Biocon and Legacy Mylan Viatris.
Joining this new team along with me is Sarath Kumar, our Chief Finance Officer, who is also on this call. I would also like to thank our shareholders for their continued support and trust in our company. Now, specifically getting down to FY25 with respect to our results at the outset, as Arun mentioned, I’d like to say that we’ve had a very challenging year and while we had all the efforts in place to improve the quality of the overall business through our focus on margin expansion, it is regrettable that we significantly missed our revenue and EBITDA guidance for the full year and for the exit quarter.
We attribute this miss on the and the EBITDA guidance to intense competition that we’ve seen on the ibuprofen range of products. As we said, FY25 was a recent year at Solara. Primary focus being margin expansion and debt reduction and establishing and maintaining good governance. On all these points I would say that we’ve done fairly well. Since you’ve been watching our results, you’ve seen that our gross margin has expanded from 37.8% in FY24 to 51.5% in FY25, an increase of almost 1370 basis points on EBITDA as well. EBITDA margin has expanded from negative numbers in FY24 to 16.5% in FY25, an increase of almost 2,360 basis points.
Our contribution to my profitable markets, which is the regulated markets, continues to be strong. We are currently clocking that at 76% of our overall business that is attributable to the regulated markets. We’ve been successfully able to steer the company from lower margin products to more profitable products. Our reliance on plain ibuprofen business has been coming down. We at the same time we continue to grow in what I call is the value added ibuprofen or the ibuprofen derivatives business and the non ibuprofen range of products. We’ve also taken up additional capacities. We’re also building additional capacities, incremental capacities as I would say to try and rebottle make our higher margin products.
On the regulatory compliance front, I’m proud to say that we’ve had we continue our stellar performance on this front. We’ve been through six inspections since April 25th, two of them being US FDA inspections. The first was W in May 24th and more recently in Ambernath in May 25th. Both these inspections were cleared with 0483 inspection observations. We’ve received WHO approvals for our facilities in Mangalore, Ambernath and Pondicherry and our Mangalore facility has been has received the EU GNP certificate as well. Forward looking Going forward we will repay the company to what we call as profitable growth with our continued focus on market expansion.
We will continue with our tight cost control mechanisms leading to margin expansion and also focus on debt reduction from an outlook standpoint as we pivot from reset to growth during FY26, we will build on the foundation that we’ve laid out in FY25 and we expect the business top line to grow by around 10% and the EBITDA to grow around 15 to 20%. And lastly, before I hand over the mic to Sarat, I’d like to give an update on Cramps and Polymers. On the Cramps and Polymers new entity update, we know it’s subject to regulators approval.
We’ve coined a new name for the company. That new company is called Syntex Global Pharma Solutions Ltd. We incorporated that company. In April 2025 and that was subsequent. With in principle approval that we received from the Board during the last quarters. Now going forward, we will initiate the next steps with respect to securing various shareholders and statutory approvals in the coming quarters. With this, I will now hand over the call to Saratoga to give his introductory remarks.
Saurabh Kumar — Chief Financial Officer
Thank you Sandeep. Good morning, good afternoon and good evening ladies and gentlemen and thank you for joining me. Today’s Q4 earnings call for Solara Active Pharma Science Limited. I’m Saraj Kumar and I’m glad to address you as CFO of Solara. First of all I would like to take this opportunity to actually thank to actually thank Arun Sandeep and the Board for the trust and actually providing me this opportunity wherein I can help wherein I can help Solar pivot towards growth along with the leadership team. In terms of my brief introduction, I have roughly 18 plus years of work across industry in multiple finance roles both in India and overseas.
And I’ve also had an exciting stint with one of our group companies, Stripe Summer for roughly six years plus and then more recently I was working as CFO of Biosima PE backed CDMO Biotech based out of Australia. Now coming back to our results of Q4 and FY25, although as part of leadership team I equally regret the fact that we had missed on our revenue as well as EBITDA guidance by a fair margin. But I’m partially satisfied as a CFO that we have been able to achieve significant gross margin expansion and healthy EBITDA metric which actually demonstrates the fact that we as a business are actually operating in the right product and customer mix.
This combined with a stringent monitoring of the operating costs, I’m sure that it will help us drive healthy EBITDA metrics going forward. I’m also glad to report to you all that as a company we have reduced our operating cost base by close to 1,300 million year on year which reflects roughly 22% reduction in our operating costs and from a quarterly exit run rate of close to 130 odd crores in FY24 we are currently at 109 crores cost base in FY25 Q4 as we continue our growth in FY26 with focus on cost and margin expansion, any incremental business growth at a healthier gross margin would have a positive flow through to ebitda.
In this journey of maintaining the healthier balance sheet during FY25 we have been able to reduce our debt significantly from a historic number of close to 1000 odd crores in FY24 to roughly 776 crores as we entered FY25. Further, we are in the process of realization of our first call money of the rights issue which was there for last year which hopefully we should be able to utilize those funds this week or early next week and with that we are looking to reduce our debt further to close to around 650 odd plus by end of May.
Further, we actually have a line of sight once we have our second call money of the rights issue realized in May 26 by Q1FY27 we expect our net debt to EBITDA to come down to a range of 1.7 to 1.8 subject to the shareholders and statutory approvals. Once we have our new crams and polymer entity card out, we plan to further have a pushdown of debt of close to 200 quad close to the new entity which would make our catalog business balance sheet much lighter and our net debt to EBITDA will be somewhere around 1.5 times of EBITDA.
As we continue to have a stretch working capital scenario during FY25 which is which is partially driven by our muted revenue growth, we had to asex certain short term debt at doing some short term intervals at an incremental borrowing cost and hence we see close to 11 crore incremental finance cost in FY25. As we step into FY26 with a focus on our profitable growth and gross margin expansion and as we work through our working capital optimization, I’m sure that we would ease out this particular finance cost significantly in FY26. Going ahead. As was mentioned by Arun and Sandeep, we will continue our ongoing actions on improving profitability for the business through cost improvement program, operating cost optimization across our operational network and also optimizing the entire working capital cycle and Debt.
As an organization, we will be looking to from reset to growth in FY26. Thank you for your time. And now we are happy to take questions. Neetu, can we take the Q and A please?
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 Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of akash Jain from MoneyCurves Analytics. Please go ahead.
Akash Jain
Yeah, thank you for giving me the opportunity. I have a few questions actually. I think as you guys also mentioned, I think clearly last two quarters have. Been. A little bit of a not so good results for investors point of view. I think from some of us who have been holding and we’ve been invested for a while, I think somehow I don’t feel that I appreciate or understand the problems that you are facing with ibuprofen quite well. So I would really appreciate if you can in a way also tell us really what exactly is happening. Is it demand issues, is it higher competition, what kind of price pressures are we, are we seeing? So I think some sort of understanding of what really is the problem will really help us also understand where we are.
So I think that that is one part I don’t really understand the problem. So maybe a little more details in terms of what exactly is happening that will be really appreciated. The second point, I think last time you didn’t mention this time but I think in the last call you mentioned that we are having a problem with ibrufen, but we are be focusing on the plain ibuprofen business and we are focusing a little more on the derivative business where the challenges seem to be a little lesser. So, so what is happening over there? What percentage of our revenue current currently is from plain ibuprofen and how much of it is from derivatives of ibuprofen? What is the strategy going forward for both plain and derivative derived or derivatives of.
I do fun, please if you can spend more time on this.
Arun Kumar
Sure. So this is Arun here. So I’ll answer your second point first. It’s not true that we haven’t spoken about Sandeep very clearly articulated that our focus on ibuprofen has shifted from plain ibuprofen to derivatives and we are gaining market share in that space. So that has been addressed as regards why our Ibuprofen franchise is getting severe competitive pressure is because there is an excess capacity currently mainly coming out of India with new plants and with newer plants, newer technologies and obviously the routes of synthesis used by the newer players are far more efficient. Consequently, even if we adapt to newer technology, new ways of manufacturing ibuprofen, there are big regulatory changes that will be required in our files of our customers.
And consequently we are very focused on retaining 100% of our branded big pharma customers, which we have for the last 25 years. While on the generic space we have let gone off market. The pricing that currently prevails in the market, which we can’t be very specific, does not even cover a cost of manufacturing. So it doesn’t make any sense for us to invest high working capital in a business that doesn’t deliver value. For now, we have these cycles in ibuprofen every once in 15 years, 15, 20 years and we see and we are a player for 35 years.
So we are invested in the platform. It’s not that we are running away from it. We are doing enough work to make our plain ibuprofen business also competitive, but we are not yet ready from a regulatory standpoint to adopt those new processes. So that should address your first question on the ibuprofen platform and the derivatives. Like I said, if the ibuprofen business in absolute terms has not dropped, it’s because of improved sales and derivatives. And that is why in comparison to FY24, there is a significant increase in margins, both in gross margins and in EBITDA because of that.
Akash Jain
And Arun, what is the share of ibuprofen in the business?
Arun Kumar
We don’t give specifics, we don’t give any specifics on I typically it used to be as high as 60% but now currently it is less than 45% including derivatives.
Akash Jain
And you don’t see challenges on Ibrofone Boseman pricing as well as demand from the existing regulated client market? Clients that we have
Arun Kumar
no, we work. We work with all the big pharma companies have been our accounts for more than 20 years. We don’t see them moving away for pricing because they are all branded products. But at the same time we have to be conscious of the pricing environment and we are working through it. We think that we should solve for ibuprofen from a competitive landscape standpoint by the end of the financial year. And that is why we still have a muted view on ibuprofen for the current year.
Akash Jain
And Arun, on the fy, I Think.
Arun Kumar
If you don’t mind, can you just come back on the queue, we’ll obviously answer your question.
Akash Jain
Sure.
operator
Thank you. Our next question comes from the line of Anand Mundra from Sorewell. Please go ahead.
Anand Mundra
Hi, good.
Arun Kumar
We can’t hear you. Can you speak up?
operator
Mr. Anand, sorry to interrupt you. May I request you to use your handset when you ask the questions?
Sandeep Rao
Please once again.
Anand Mundra
Can you hear me now?
operator
Yes, this is better.
Anand Mundra
Yeah. Sir, wanted to understand about gross margin. What was the effort we have taken that led to significant gross margin expansion despite competition and briefing?
Arun Kumar
So like Sandeep alluded in his opening statement, the gross margin improvement is in programs in products that are having recently launched or launched last year where we get higher market share, newer product launches and existing products, greater market share and getting and not being fully invested in ibuprofen. If you don’t sell a lot of ibuprofen at low price, automatically your base gross margins will improve. So we’ll continue to focus on that this year and build from where we left off. As a gross margin standpoint.
Anand Mundra
What is the sustainable gross margin for this business going forward? Both the entities, the catalog API business and crunch and polymer business.
Arun Kumar
Currently the gross margin on the cramps and polymers business, the base is significantly smaller, is higher at around 65% and the current gross margin on the catalog business at around 53, 55% is sustainable in our view. And that is if we don’t have to sell more ibuprofen pain, which we are not doing, those gross margins will be maintained and growth will continue to come from the non ibuprofen platform which the company is heavily invested in.
Anand Mundra
Okay, so the second question is with respect to your guidance on EBITDA margin, as per the guidance for FY26, it implies around 17 to 18% EBITDA margin. What is the optimal level of EBITDA margin which we can generate from this business in next two, three years?
Arun Kumar
We haven’t given a guidance, we’ve given an outlook. And there’s obviously it’s more like a goal. We have currently achieved our guidance of last year to be in that 17% range from a negative EBITDA. I think we have the ability to move this by 2, 300 basis points. Will it happen in the next financial year? This financial year? The. That’s, that’s what we hope so. But yeah, we have, that is why we have our outlook demonstrates a higher percentage of EBITDA growth than our top line growth.
Anand Mundra
Okay, so notice one compliance question I’m holding partly paid of shares. And I was surprised the trading of the shares were stopped much before the payment due date. I don’t know why we don’t control for so long.
Arun Kumar
Exchanges do that. Take it offline. It’s a stock exchange decision, not our decision.
Anand Mundra
Okay, thanks.
operator
Thank you. Our next question comes from the line of Jazdeep from Clockwind Capital. Please go ahead.
Jasdeep
Hi sir, thanks for taking my question. So your sales have been declining since the last three quarters. When do we start seeing sales grow quarter on quarter?
Arun Kumar
Well, we hope to start getting that sorted as early as this quarter.
Jasdeep
In 1Q26 we should expect quarter on quarter growth. Yeah, got it, sir. Also, sir, could you give us an idea of what kind of new products you have launched in the last year?
Arun Kumar
They don’t give product specifics as a policy, ever. The company doesn’t do that for competitive and other reasons.
Jasdeep
So if you could talk about broad nature of the products. If you know, you could describe it that way.
Arun Kumar
Catalog generics is catalog generics. It generates.
Jasdeep
Okay, got it. So the way you have described issue in your ibuprofen business in it seems like the issue is structural. So does it make, doesn’t it make sense to, you know, stop this business and you know, pivot the manufacturing to.
Arun Kumar
Something else On a structure we do, it still delivers a very significant revenue for us. And we are very confident that we will be able to. With our. With the efforts of capital efforts that we are doing now, we are very confident that we will be a competitive player even in the plain ibuprofen. We are, like you rightly said, reducing capital allocation to that part of the P and L. But I don’t see any reason for us to exit that business.
Jasdeep
Got it, sir. Thank you. That’s all. Smart.
Arun Kumar
Thank you.
operator
Thank you. Our next question comes from the line of Nigel Mascarinius from Everflow Partners. Please go ahead.
Nigel Mascarenhas
Good afternoon, sir. Thank you for the opportunity. A couple of questions from my end. Firstly, what is the nature of the CVM of the business that we have? Is this contract manufacturing of patented drugs for innovator companies or is this contract manufacturing of complex drugs?
Arun Kumar
If so like what portion More the more the second.
Nigel Mascarenhas
More More of the second more of the complex drugs. Contract manufacturing.
Arun Kumar
Yeah, correct.
Nigel Mascarenhas
Do you have any percentage that you could throw some light on for the breakup?
Arun Kumar
Maybe It’s a very small business for us. It’s just about hundred crores.
Nigel Mascarenhas
Okay, and what sort of growth do you expect in the CDMO business over the next two to three years? And what’s the margin profile of that business that you expect.
Arun Kumar
It’S a little too early. We are in the process of working through our models and capital investments and stuff like that. And we will very soon along with the NCLT process we will be in a situation to give you those answers.
Nigel Mascarenhas
Thank you sir. Thank you for the opportunity.
Arun Kumar
Thank you.
operator
Thank you. Our next question comes from the line of Abhishek from Padmaja Investments. Please go ahead.
Abhishek
Am I audible sir?
Arun Kumar
Yeah.
Abhishek
See my first question is on what will be the cost of money?
Arun Kumar
Can you please speak up?
Abhishek
Yeah, yeah, yeah. What will be. What will the cost of money be for the financial year 26. For the financial year 24. I think it is more like 11 to 12%. Right. Like close to 110 crores and 990 crores debt. So what will the cost of money be for next financial year?
Arun Kumar
We are expecting this to reduce by about 200 basis points.
Abhishek
Okay. And next my second question is. So you are guiding for revenue growth of 10% and EBITDA growth of more than 15 like in the range of 15 to 20%. So it is more on the operating cost reduction that we are actually planning this.
Arun Kumar
It’s a combination of gross margin expansion, absolute terms and operations. Because we currently do not operate our plants at 100% capacity utilization.
Abhishek
I have another question. Should I ask now or should I join back?
Arun Kumar
Please come.
Abhishek
Yeah. My next. My last question is this wiser plant that you are planning to use it for the camps business going forward. So that cross plot of 600 or 700 crores will be separated into the demurched company. If I understand you right because then your income statement.
Arun Kumar
I’m not sure about the gross block number but you’re right, that is what is going to get demerged. But all of it cannot be used for cramps. So we’ll come back to you with more specifics when we are closer to the scheme.
Abhishek
Okay. Okay. Thanks.
operator
Thank you. Our next question comes from the line of Atish Srinivasan from Crystal Ltd. Please go ahead.
Satish Srinivasan
Good afternoon sir. Thank you for this opportunity. First I appreciate on the results for 25 I think what are you able to improve the top line and also the real in the margins. I have just one question. I want to understand the change in management which happened currently. I think CEO have changed currently and CFO joined last year got changed. So just want understanding on how this new management is going to be. Whether they are going to stay in the long term and what are the plans?
Arun Kumar
You should ask them there on the Call.
Sandeep Rao
I said in my opening remarks I think this company has an excellent platform. There’s a lot of discipline in the platform. And if we can re pivot it to growth which we’re all working towards with the theme of profit maximization and debt correction, I think the future is bright. So mysat and Sarath are here for the long term. That’s all we can say.
Satish Srinivasan
Perfect. Congrats on that and hope you accomplish what you told. Thank you so much.
operator
Thank you. Our next question comes from the line of Darshul Pandya from Fin Trist Capital. Please go ahead.
Darshil Pandya
Hello, can you hear me?
operator
Yes. Please go ahead.
Darshil Pandya
Yes. So what would be the capacity utilization currently.
Arun Kumar
60%.
Darshil Pandya
Pardon?
Arun Kumar
66.
Darshil Pandya
60%. And sir, also wanted to understand during your opening remarks you said debt would be around 650 crores by May which we are actually seeing on the balance sheet. Can you just confirm what is that? What will be the actual numbers post this money is received.
Arun Kumar
That include. Sharath. You want to address that?
Saurabh Kumar
Yeah. Thanks. So once we actually utilize this particular money what we have received for first call. First call money of the rights issue debt will come down to 647 crores by end of May 25th.
Darshil Pandya
First call money we will be receiving in next one or two weeks.
Arun Kumar
Now it’s there already in the bank. Do we have Soranti at got to use. This week.
Darshil Pandya
Okay. But for the borrowings in the current liabilities are seen at 662 crores already.
Saurabh Kumar
So we have actually classified that as both non current as well as current debt. So we are actually talking about gross debt being 647.
Darshil Pandya
Okay, got it. And what was the interest cost on this for this year?
Saurabh Kumar
So this year we’re expecting an interest cost of close to 85 odd crores.
Darshil Pandya
85 crores. Okay. And the second question probably would be on the Vizac plant. What are. What are we expecting for this year in number terms or something. If you can just guide on.
Arun Kumar
There would be very small growth. 10 15% growth. We haven’t yet started putting capital in Vizag to ensure that we can onboard customers. Until that is done, we are not. We are not onboarding customers.
Darshil Pandya
Okay. And the depreciation would be on the same line, sir. Or was it is in FY25.
Saurabh Kumar
Deposition.
Darshil Pandya
So around 99 crores is what we have paid for this.
Arun Kumar
Yeah. You should India for your model purposes keep the same.
Darshil Pandya
All right. I’ll follow. I’ll fall behind the queue. Thank you so much.
operator
Thank you. Our next question comes from the line of Vinay Kumar from jvk. Sorry, JVK Investment. Please go ahead. Your line has been unmute reminding officers.
Arun Kumar
Can you move to the next question?
operator
Yes, sir. Our next question comes from the line of Niriksha Makam with Farley Capital. Please go ahead.
Niriksha Makam
Hi, good afternoon. I just had one question. Trump recently announced the most favored nation policy. I wanted to understand how does this impact Solara and because I understand you’ve recently expanded and from most favorite.
Arun Kumar
The MFN formula is mainly for branded pharmaceuticals and not. It is not linked to APIs.
Niriksha Makam
So there won’t be any direct impact, Right?
Arun Kumar
No.
Niriksha Makam
Okay, thank you.
Arun Kumar
Unless there is tariffs. Yeah. Which we don’t know as yet.
Niriksha Makam
Got it. Thank you.
operator
Thank you. Our next question comes from the line of Nishant Bhatt from Equity Works Ltd. Please go ahead.
Nishant Bhatt
Hello. Am I audible?
operator
Yes, sir, please.
Nishant Bhatt
Yeah, yeah. So my question to Mr. Arun Kumar was. See I. I know you have a pretty good polymer business. So could you please you know let us know what kind of synergies does this have with the cramps business where you are stepping into.
Arun Kumar
Like you mentioned that first of all we are telling you that the grams business and there was alluding to somebody an earlier question of another investor or an analyst. We are into difficult chemistry. Okay. So let’s. Let’s just get the segregation of polymers is that there are not many people making polymers. It’s a complex process and polymers therefore it’s more the highest non catalog generic API is what moves to the so called crams and contract development business.
Nishant Bhatt
And this, this also. Does this have some synergy with the peptide, you know, business which you are entering into? No. Okay, that’s it.
Arun Kumar
Thank you.
operator
Thank you ladies and gentlemen. That was the last question for the day. I now hand the conference over to the management for closing comments.
Arun Kumar
Thank you all for joining today and if you have any questions please feel free to write to Sharath or to Sudeep or to our investor desk. Thank you. Appreciate your time.
Sandeep Rao
Thanks a lot everybody.
operator
Thank you. On behalf of Solara Active Pharma Science limited That concludes this conference. Thank you for joining us and you may now disconnect your lines.