Windlas Biotech Limited (NSE: WINDLAS) Q4 2025 Earnings Call dated May. 23, 2025
Corporate Participants:
Hitesh Windlass — Managing Director
Komal Gupta — Chief Executive Officer & Chief Financial Officer
Analysts:
Ankit Gupta — Analyst
Dhwanil Desai — Analyst
Neelam Punjabi — Analyst
Unidentified Participant
Pavan Kumar — Analyst
Abhishek Singhal — Analyst
Nitin Shakdher — Analyst
Rishi Kothari — Analyst
Karthi Keyan — Analyst
Presentation:
Operator
Please wait while you are joined to the conference the conference is now being recorded Ladies and gentlemen, you are connected to the Biotech Limited Q4 FY ’25 Earnings Conference Call. Please stay connected. The call will begin shortly. I repeat, ladies and gentlemen, you are connected to Biotech Limited Q4 FY ’25 Earnings Conference Call. The call will begin shortly. Please stay connected.Thank you ladies and gentlemen, good day and welcome to the Windalas Biotech Limited Q4 FY ’25 Earnings Conference Call. This call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company on the date of this call. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing start then zero on your touchstone phone. Please note that this conference is being recorded. Today on the call, we have Mr Hitesh Windalas, Managing Director; and Ms Komal Gupta, CEO and CFO. I now hand the conference over to Mr Hitesh Vindalas. Thank you, and over to you, sir.
Hitesh Windlass — Managing Director
Thank you. Good morning, everyone, and thank you for joining us today for our financial results for quarter and year ended 31st March 2025. We have uploaded the press release and investor presentation on our website as well as on the exchanges. I hope everybody must-have gotten an opportunity to go through it. Initially, I would like to discuss the outlook and way forward for Windless Biotech, followed by financial highlights for Q4 and FY ’25 of the company, which will be shared by our CEO and CFO, Ms Komal Gupta.
The Indian pharma market registered a Y-o-Y growth of 8.4% in FY ’25, largely driven by price increases with volume growth of 0.4%. We are pleased to report another quarter of strong performance of revenue growth of 20% Y-o-Y for FY ’25 and 18% Y-o-Y in-quarter four of FY ’25. Our generic formulation CDMO vertical continued to benefit from new customer additions and a broader product portfolio. The trade generics and institutional vertical maintained its growth momentum through wider market penetration and institutional engagement.
The company continues to work towards the initiatives in export verticals such that filing — such as filing of numerous dosiers and entry into newer markets. Our proactive investments in quality systems infrastructure and digital transformation continue to position us strongly with respect to schedule and compliance. We have begun utilizing Plant 2 extension in-quarter four FY ’25, which gives us the required room for growth in the upcoming period. Our injectable facility has been approved by several large customers and few injectable products made by us have been commercialized by our CDMO as well as the trade generics verticals.
We continue to augment our manufacturing network through modernization and retrofit of our recently-acquired Plant VI oral solids facility as per plan. The company achieved its highest-ever earnings per share in FY ’25, INR29.19 post our listing. In-line with our dividend policy, the company paid INR11.5 crores — INR5.5 per share dividend related to FY ’24 and proposed the dividend of INR12.1 crores, INR5.8 per share-related to FY ’25. Looking ahead, we remain focused on enhancing long-term value for shareholders through diversification of our client base, increasing operational efficiencies, retaining and rewarding key talent and expansion of dosage forms. I will now request Ms Komal Gupta, our CEO and CFO, to discuss the financial performance highlights. Over to you,.
Komal Gupta — Chief Executive Officer & Chief Financial Officer
Thank you, Hitesh. Good morning, everyone. We are pleased to conclude FY ’25 with strong performance across key metrics. INR759 crores revenue, a 20% — 20.4% Y-o-Y growth, nine straight quarter of record revenue, INR202.7 cr, 18.3% Y-o-Y growth, highest-ever EPS of INR29.19 post listing, working capital days at 14, sustained ROCE and ROE greater than 20% alongside capacity expansion projects and strong liquidity of INR213 crores. We have sustained our operating margins, reflecting our robust financial management, despite an increase in depreciation, largely attributable to injectables facility and plant II extension. PAT stood at INR61 crores for FY ’25 and INR16.3 crores for Q4 FY ’25 as compared to INR58.2 Crores and INR17 crores for FY ’24. EBITDA grew by 20% Y-o-Y to INR94.1 crore for FY ’25 and 16% Y-o-Y to INR25.5 crores for Q4 FY ’25. India’s pharmaceutical industry ranks as the third-largest globally by volume. Our state-of-the-art manufacturing facilities in strengthen our ability to deliver high-quality, scalable solutions to meet the evolving demands of the market. Windla’s is strategically positioned to capture growth through diversified presence across its core verticals. In generic Formulation CDMO vertical, we continue to direct our efforts towards sustained client engagement, new client acquisitions, new product launches and higher wallet share from current partners. This vertical recorded 15% Y-o-Y increase in FY ’25 to INR555.1 crore. For Q4 FY ’25, this vertical generated INR147.2 crores in revenue, witnessing a 15% Y-o-Y growth. Trade generics and institutional vertical is driven by portfolio expansion, broader distribution and institutional network, also supported by government-driven initiatives. Our trade generics and institutional vertical continued its growth momentum in FY ’25 with revenue searched to INR172.1 crores, marking a 41% Y-o-Y increase. For Q4 FY ’25, revenue increased to INR45.5 crores, registering 31% growth Y-o-Y. Exports vertical reported revenue of INR32.6 crores in FY ’25, a 19% increase Y-o-Y with Q4 FY ’25 showing a revenue of INR10 crores, reflecting 12% growth Y-o-Y. In conclusion, FY ’25 has been a year of meaningful progress for Windless anchored by consistent growth, resilient margins and strategic execution. These results underscore the strength of our business fundamentals and clarity of our vision. As we look-ahead, we remain confident in our ability to seize emerging opportunities and deliver enduring value to all our stakeholders. That’s all from our side. We can now begin the Q&A session. Thank you.
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 their 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. The first question is from the line of Ankit Gupta from Bamboo Capital. Please proceed.
Ankit Gupta
Yeah. Thanks for the opportunity. Hitesh and Kumil, if you can talk about the injectable plant, it’s almost been a year since we started this plant and now the validations have — have been completed. The product approvals are also coming through the — and we have started the commercial supplies both on the CDMO as well as trade generic side. So if you can talk about how — how do you see FY ’26 and FY ’27 panning out? We have incurred quite a bit of fixed-cost over here, employee costs, other expenses as well as depreciation. So how should we look at the numbers in FY ’26 and ’27 for this — those new doses form that we have entered.
Hitesh Windlass
Okay. Thank you. Sure, Ankit. Let me add some perspective and then maybe we’ll dwell up on this one. See for this FY ’25, we had — we identified a portfolio of products for our injectable and our vial lines and vials and we had the task of bringing taking all these products as stability batches to, you know, test out how the manufacturing is happening, the stability profile. We also had the task of completing media fill and getting our WHO GMP licenses, both of which are important requirements for commercialization to CDMO partners as well as initiating the other business development activities.
And in Q4, largely we saw whatever revenue that we saw in injectables. Although we don’t give a dosage form-wise revenue, but we promised earlier that we will come back and provide some feedback on this at the end-of-the year. The incremental depreciation for the related to injectables facility was INR145 million in the last year. And the revenue generated, which I mentioned was largely from Q4 FY ’25 for injectable products for us is about INR6 crores. Now we are in the process of obviously ramping-up. And as I mentioned in my remarks, this involves the audits and approvals by large customers who are already buying oral solids from us and various products. And also it involves a product-wise audit of each of the stability data dossiers that we have now prepared.
So we are looking to ramp-up. And obviously, our goal is to achieve that in the fastest possible way. And so we are on-the-job and expecting to build this business strongly in the future. Exactly how and when and what will be — we’ll be able to achieve, that is something that we are not discussing, although obviously, we have internal targets for everything. So that’s — Kumul, if you want to add something?
Komal Gupta
And no, I think more or less you have covered itesh. Just a small technical correction, 145 million is our overall increase in depreciation, which is majorly attributable to injectables and plant extension depreciation.
Ankit Gupta
So, if you can talk about do you think we can — we can end this year, let’s say, in the second-half with a capacity utilization of 50% 60% at the injectable unit and do we see breaking even on this facility in this financial year or breaking even both at EBITDA as well as on the PBT level, this is can talk about, do you think we can breakeven in FY ’23, so we should look-forward to FY only?
Komal Gupta
If it was completely in — we would want that to happen as soon as possible, honestly. When exactly and how much revenue we expect or how much capacity utilizations we expect as we have maintained in the past, you know, we say that it’s difficult for us to give that information because it gives away a lot of competitive advantage for us. So we won’t be able to give that. Having said that, we would like to mention that we are really putting all our efforts in and we are having seeing a few good wins coming in and we stay confident to really you know, to really deliver to everyone’s expectations just when allow us some time to you know to let you see that happening instead of us saying something and trying to you then justify one month here or there.
Ankit Gupta
Yeah, sure, sure. And do you think we have also started selling trade generics in the injectables? So given it’s a smaller facility for us compared to our overall OSD facility, do you think Trace will become a bigger portion of our sales here or CDMO will continue to be around, 70% 75% of our sales in injectables also.
Komal Gupta
Yeah, we — so
Hitesh Windlass
It should be roughly similar just because of the base size of the business. So I — but I do believe that you know, eventually the — even the plant that we have put is for meeting the standards of picks and export markets. And our goal has always been to, you know, provide these products into those markets because that’s where the real margin will come. So although that is again a little bit later because you have to get plant approvals by regulatory authorities and then dosier approvals in those countries. So our goal eventually is that initially it may — we don’t have any reason to expect that you know catering from this facility will be very Different in proportion. But longer-term, we do want to prioritize exports more because we believe that’s where the stronger margin opportunities will come. And of course, we obviously have ability to not — to also do capacity expansion within this plant, you know. So we don’t see that trade-off as hitting our, you know, capacity issue. So we’ll — we have to take it step-by-step though.
Ankit Gupta
So last question before I come back-in the queue. On the employee cost and
Operator
Mr Ankit, sir, I request you to return to the queue as there are several participants waiting for their turn. Thank you. 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. The next question is from the line of Dwarnil Desai from Turtle Capital. Please proceed.
Dhwanil Desai
Hello. Hi, good morning, everyone. So my first question for team is that if we go and rewind a couple of years back, maybe two, three years back, I think the idea was that as the generics and export growth, our gross margin will be better in freight generics and export and hence that will flow-through to the bottom-line or EBITDA level. Now if I look at the numbers in terms of proportion, freight generics have moved from 10% to 23% and even our gross margin have expanded by couple of 100 basis-points. But despite that, our EBITDA has remained at 12%, 13% range. So in — so how should we look at it? And is it primarily because of the cost of injectable plants coming in that that’s how we should see it the moment that cost gets absorbed, we should see that coming through? If you can spend some time on that?
Komal Gupta
Yeah. More or less, you are right. In fact, there has been — other than injectables business, there has been we have been able to deliver very good growth in terms of the EBITDA even as a percentage of revenue. So injectables, as everyone is aware, might take some time to ramp-up, but this year’s P&L, FY ’25, if we see, even if I keep opex of injectables in and just remove the additional depreciation coming in from injectables and plant extension, our PBT margins have actually PBT PAT margins have improved. That is one. And as you were specifically talking about EBITDA as well, EBITDA margins have also improved if we take-out the injectables OpEx. We can’t give out the number as such. But as Ritesh mentioned, in only — mainly Q4 only we had the revenue coming in and that too not a — so in total, INR6 crores revenue is what we could do just from injectables.
Hitesh Windlass
Actually, also one more thing I want to add, Vanil. See, this year was while you correctly mentioned a couple of years ago when we had talked about this, the operating leverage for growth would was — we are expecting and we are seeing also. In fact, what I want to point out is that this year, the minimum wage increase in Uttra Khan was very massive, almost 25%, right? So that’s something that was obviously cannot be predicted. But despite that, we have increased overall production. We — so we have used more manpower, right, obviously to do that, but still we — and added injectable opex and added plant to extension opex in Q4 and still maintained our margins. So in some sense, we have actually completely accomplished what we were talking about and even absorbed some of these additional impact.
Dhwanil Desai
Got it. Got it. So going-forward into FY ’26, since most of the costs are behind and I assume that the injectable will quarter-on-quarter will continue to ramp though you are not giving any guidance on specific numbers. As this cost gets absorbed and the trade generics and export proportion growth, should we see the margin expansion coming through in FY ’26 and FY ’27? That’s how we should go about it?
Komal Gupta
Ultimately, margin expansion should come. We don’t want to specifically mention when, but you know, obviously, given everything on plate margin expansions have to come.
Hitesh Windlass
Yeah. I also want to just add a small — this thing that see, as we have said in the past also that you know, we sometimes have had quarters where we’ve had very strong growth and sometimes have had quarters where I’m talking about trade generics for instance or you know, exports. We have to look at this in the overall picture, you know. So and I, you know, we are very optimistic and very gung-ho about the future also. That is why we are expanding plant sakes, you know, adding capacities and doing all this. So we are very, very confident that despite overall IPM volumes being so slow. We have delivered almost nine quarters of very strong results and we see a path forward as well. And while it’s difficult to guide on quarter or business part wise, but we are on a whole very, very optimistic and we continue to do that.
Dhwanil Desai
Thanks. Thanks,. Just one question on export. So again, this — cred generics, we have done exceptionally well in last three, four years. While on export, we have guided that the growth will be back-ended, but it’s been three years and I think all the regulatory filings and timelines, etc. I think we should be now seeing a some steep growth in export is what I understand from whatever things have happened so-far. Is that again right way to look at it? Do you guys see traction in that in terms of findings entry into newer markets? You know-how do you guys think about export market?
Komal Gupta
Yeah. So we have delivered a five-year CAGR of about 25%, right? We have delivered a year of 32 32C revenue this year and it looks like it’s a 19% growth, but we remain very optimistic about the opportunity in the target market. And we continue to file those years to build the base for upcoming periods. So we are saying that we are optimistic. But as you rightly mentioned, it takes time to build the business in exports. Many of the opportunities are like binary opportunities. But yeah, we should we stay positive and we are expecting exports also to slowly become a become an important vertical for us
Dhwanil Desai
Okay, I’ll come back-in the queue. I have more questions.
Operator
Thank you. The next question is from the line of Banjabi from Purple. Please proceed.
Neelam Punjabi
Yeah, thanks for the opportunity. And firstly, congratulations on some great set of numbers over the last year. My first question is on the trade generics vertical. So we’ve you demonstrated phenomenal execution with doubling of revenues over the last two years and we’ve almost tripled revenues over the last three years. So I just wanted to understand at this current scale of annualized INR200 crores, are we among the top-10 trade generics companies in India?
Hitesh Windlass
So thanks, Nilandhi, first of all, for acknowledgment of the good performance. I think that you know, of course, if you see the largest ones, maybe you know companies like Sipla and Alchem will be the largest, you know. So there are some unlisted competitors who are going to be in the next range. And we are still — we are one-tenth of their size. So unfortunately, there is not enough data about generics and it’s not really covered by the — you know the data agencies like IQVIA or AIOCD. So it’s hard to say. It’s hard to say for us. From our perspective, we really look at trade generics as a very strong space. And if there is no reason why Windla should also not aspire to reach the — you know the levels at which CIPLA and you know Alchem Are today, INR2,000 plus crores. So why — why shouldn’t a good manufacturer like us who has the opportunity to understand the products and is able to build sustainably. There can be plus/minuses changes, but I don’t see any reason why we cannot eventually grow to become as strong as that.
Neelam Punjabi
It makes sense. That’s good to know. And my second question is on our working capital cycle. So we are at a very efficient level of 14 days. But at the same time, our peers are listed peers at least are in that 80 to 100 days kind of a level. So I just wanted to understand how are we being able to maintain such healthy working capital cycle and is this sustainable going-forward?
Komal Gupta
We would probably like to give credit to the financial discipline that we have been internally maintaining. Top-to-bottom, everyone is kind of conscious in our organization relating to any decisions. So how it impacts working capital or how it impacts liquidity is, I think almost everyone quite taking a decision doesn’t forget to consider that impact,. Other than that, the market of course remains same those vendors, customers and how you this works. In terms of sustainability, we would like to sustain that. We have maintained these kind of working capital levels for two years in a row. And we would love to sustain, but of course, completely, it’s not internally. If there is an impact, otherwise there is no reason why we shouldn’t be able to do it.
Neelam Punjabi
Got it. And just one last bookkeeping question. So our depreciation for the quarter was INR8.3 crores. So is it — is this the highest-level as in — are we going to sustain this or would it further increase in the next year as well on a quarterly basis?
Komal Gupta
Until Plant six gets capitalized, these depreciation levels should be sustainable because this has complete plant to extension depreciation for the quarter and injectables depreciation. So that’s why if you are comparing it with Q3 or Q2, there would be increase that has come in because of the plan to extension capitalization that happened by end of Q3.
Neelam Punjabi
Got it. Thank you. I’ll get back-in the queue.
Komal Gupta
Thank you.
Hitesh Windlass
Thank you
Operator
Thank you. The next question is from the line of Avinish Barman from. Please proceed.
Unidentified Participant
Hi, good morning. Thanks for taking my question. First question was on the volume growth. Can you give us some indication on how did your volumes flow-in this quarter and the full-year?
Hitesh Windlass
Yeah. No, Amit, we are not generally providing, you know this information. But for us, since you know we are a cost-plus business and assuming that typically our conversion costs remain so most of the growth is typically volume linked only.
Unidentified Participant
Okay. Okay. And if Hitesh ji, your injectable plant capex is 75. I remember in I think one of the last calls you had mentioned an asset turns of about 1.1 to 1.2, which is starkly less than what you make on the oral side where the gross asset turns is close to about 3%. So why is there so much difference? And do — should we — is it safe to assume that the better margins in the injectables business result in similar kind of ROCE on the plant
Hitesh Windlass
See if you look at industry you know companies which are pure injectables you know maybe they are a good proxy to assess what has been the historical performance in my number of 1.1 or 1.2 asset ton comes from companies like those. Now as you go into export markets, especially the slightly higher fixed markets, then again, that number improves. So the asset turn is dependent on the markets you are serving, the products profile that you’re manufacturing and the — what like whether it is CMO or your own brand and so on. In general, still, I would say that the gross margin profile in injectables is higher, but also the fixed costs or running opex is also higher because you have a higher degree of air-handling units and continuous running 24×7, you cannot shut-down microbial control and all those things because of the sensitive nature of it form, but your manpower costs are lower. So there is a difference in terms of the — how this asset versus other dosage bonds will look. My sense is that probably some pure-play injectable companies would be better proxies to get, you know confident data on that.
Unidentified Participant
Yeah. So some of the pure pay companies actually do report higher margins. So that’s why I was asking when the asset turns are little lower and the margins are a little higher, do we make similar ROCs on an oral plant versus injectable plant?
Komal Gupta
In terms of ROCE, once we start delivering once we start selling to exports and start making those kind of margins where then bigger portion of injectable sales is to exports, then ROCE should be similar or even better.
Unidentified Participant
Okay. Last one, typically in an oral plant, we have seen that the peak utilization for any oral plant is close to about 70% and it happens in like five, six years. Now I know you’re not guiding for the capacity utilization on a yearly basis, but generally, will the injectable plant follow similar kind of path or we should assume like a faster kind of run-rate.
Hitesh Windlass
So I mean, we are not commenting on the run-rate at all, right? But if you’re asking whether in the peak state of, let’s say, asset turn of 1.2, what would be the utilization level at that state, right? If that is the question, then my sense is that injectable utilization can be slightly higher. So 75% might be possible. It also depends on the product mix and number of changeovers, one is incurring because that basically adds a dead time. So you know, we kind of have to take these utilization numbers with that pinch of salt.
Unidentified Participant
Yeah, sorry, please go-ahead.
Komal Gupta
No, no. I think that’s all right. I thought that you tend to understand whether the injectable peak level should be reached by when? Would it something
Unidentified Participant
That we — sorry, we are not you providing that I understand. I understand. Thank you. This was helpful. Thanks thank you.
Operator
Before I take the next question, 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. The next question is from the line of Pavan Kumar from Ratha Traya Capital. Please proceed.
Pavan Kumar
Sure. Yeah. Sir, can I — can you give us what is the kind of capacity utilization on oral — overalls right now and I’m assuming the Plant 6 now when it comes out — comes on, when is it expected to commercialize and what kind of capacity addition would that do? So let’s say, if we had a capacity today of X, what is the peak revenue that can be attained from him
Komal Gupta
So we are at around 60% to 6 62% capacity utilization in our oral that is the number that we reached in FY ’25.
Pavan Kumar
Okay. And what can be the peak utilization?
Komal Gupta
The peak utilization you’re asking. So as we mentioned with the current plant, we would be able to deliver 800 plus in terms of revenue. And by that time once we have plant fix ready, we should be ready for oral about INR1,000 revenue to be delivered from — from the addition as well. So in total, 1,000 — once plant fix is done, we would be ready to deliver 1,000 revenue in oral aside of injectables of about INR90 crores.
Pavan Kumar
And when is it respected to commercialize Plant VI?
Komal Gupta
We are trying — within FY ’26, it should be ready.
Pavan Kumar
Okay. Okay. Thank you. Thank you.
Komal Gupta
Thank you.
Hitesh Windlass
Thank you.
Operator
Thank you. The next question is from the line of Abhishek Singhal from Perpe Duty. Please proceed.
Abhishek Singhal
Yeah, thank you for taking my question. Sir, I had question one, just a bookkeeping on exports. If I look at your last two, three years of export sales and I match-up with the third-party agency Guboza data, it pretty much hits the bang on. But this year, Volza shows a significantly higher number versus what you ended-up reporting almost like a INR9, INR10 odd crores kind of a difference. So is there something like — is there a catch-up that happens next financial year or it’s just an abrasion on that side? I’m not sure whether you guys follow the data or not. So some clarity on that will help because I was expecting that, that catch-up happens this quarter, but your run-rate is pretty much equal to what you did on 3rd-quarter. So just wanted to get some sense around that..
Hitesh Windlass
So I think, see, in our export revenue, we have two kinds of revenues, right? One is when we are of course, shipping product. And then second is if we are doing some exhibit batches for a customer which is an export customer, right? So that becomes a service revenue, which probably you won’t see in external data. But I think also, Abhishekji, there is — there will always be some timing differences and things because for us, revenue recognition requires belove leading, right? I don’t know-how the data portal is, you know, saying the export-import data portals are capturing that. So I mean, hard to hard to comment on that.
Abhishek Singhal
Okay. No wise. Sir, secondly, of course your trade generics, your business around trade generics, if I look at your last five years kind of a growth, it’s roughly around 40% kind of a CAGR. And if I reflect back to your comment earlier in the call that there is no reason for you not to aspire to the levels where your large-cap peers today are. That means you know the size that you were like five years back and the size — in the overall size of opportunity is pretty much negligible. So size should not be a constraint when we start extrapolating growth as we go-forward. So I’m not asking you for your next year or two years. So for the last five-year CAGR and if you look at your next five-year CAGR, why should it be lower than what you have delivered apart from the size angle? Because if your earlier statement is right, that should not kind of suck up with that. So I just want to get a sense what can get your trade generic growth lower in the next five years versus your earlier five years?
Hitesh Windlass
Yeah. So Abhishekji, I believe that this is a, you know an execution story, right? Because I don’t think you know people are facing the you know when, when size increases, it’s not a structural issue. It’s purely about you know-how do you put in the or a management systems, the you know motivational systems, the talent management, all of those things need to align up to give a chance for execution to happen, right? So this is something that we have to be very cognizant and we are you obviously always thinking about this. Structurally, my sense is that it will — we actually feel that you know more-and-more the — if you see the number of hospital beds, for example, that is growing in India today.
The number of hospital beds that are growing in the non-metro areas. So there is a huge — they are growing because there is demand and that consumption of health services is reaching to the levels of population where it was not reaching earlier. And so my sense is that new markets, new people are getting unlocked, new people are getting healthcare, new cases are being diagnosed with chronic as well as things people are having the money to get the treatment. All those things are improving. So my question will be how we grow in this through our proper execution. Structurally, I feel that it’s — there is no — I mean, they can be — they can be obviously quarter-wise, quarter-wise variation, but my sense is that one has to figure out and navigate through that.
Abhishek Singhal
And just one last question around margins, if I may squeeze.
Operator
Sorry to Mr Abhishek.
Abhishek Singhal
Okay, that’s fine. Go-ahead. That’s fine. Go-ahead.
Operator
Thank you. We take the next question from the line of Nitin from Green Capital Single-Family Office. Please proceed to me.
Nitin Shakdher
Hi, good afternoon. This is Nitin from the Green Capital Single-Family Office. So my question is more towards Komal, not as an analyst, but more as an investor. Now you hold two positions. One is the CEO and the CFO position. Is there a thought within the management that at some point in time, you tend to open an important position like a CEO and gravitate more towards because both portfolios are extremely important for a growing company like just wanted to hear your thoughts on that so
Komal Gupta
In fact the CEO position is what stays extremely important and critical for me and that’s how the management looks at it. CFO position, in fact, we had opened a position for CFO and we were looking for a lot of candidates. But net-net, ultimately what happened is something didn’t work-out, we had issued a few offer letters as well. But when we did the analysis internally, it was actually a call was taken given how we were able to strengthen the overall balance sheet even alongside of CEO role and with our accounts and finance team being back a solid so we thought that you know in terms of priority, right now, it does not — it’s not even it’s not the top priority for us. So we actually hold that position and given how we have been able to deliver, nobody wants to change anything. If in future, something happens which takes up more of my bandwidth, we might reconsider because there is no — there is no hard and fast past a decision that has happened internally, we stay open to both. But as of now, if you ask me, we are — we are doing quite well in.
Nitin Shakdher
Okay. My second question is in reference to the investor presentation, this is Slide 34 of 36 consolidated balance sheet. There is just a clarification which I want to check. Now your cash and back balances are reducing from FY ’23, ’24, ’25 and I see that there is an increase in inventory and investments in trade receivables. Now when it comes to investments, can you quantify as to where the INR223 crores investments are broadly — because these are financial investments I assumed because
Komal Gupta
These are like liquid funds, mutual fund investments that are there and fixed deposits. So, if you ask me broadly, in fact, we can give the breakup, hold-on.
Nitin Shakdher
Perfect. Thanks a lot. Thanks a lot. Thank you all the best.
Komal Gupta
So I will — yeah. So in fact, about INR16 crores we have in fixed deposit, more than INR220 crores in mutual fund and yeah, so broadly.
Hitesh Windlass
Yeah. Choice. The choice of the funds and the banks is also governed by a policy for us where you know, which is a board-approved policy and we only stay limited in those kind of assets.
Nitin Shakdher
Sure. Thank you.
Operator
Thank you. The next question is from the line of Rishi Kothari from PI Square Investments. Please proceed.
Rishi Kothari
Hello. Yeah. Thank you so much for the opportunity and congratulation on the FY ’25 successfully completed. I mean I joined the call a bit late, but just wanted to get a quick update on the injectable business first thing. And the second thing, how exactly we are navigating from here forward?
Hitesh Windlass
So I have actually this was one of the first questions that we had and we sort of extensively shared you know, the update. What I can say additionally is that we remain very positive. We believe it is the future and you know-how exactly it will pan-out, which quarters we will get there, how much will be the bottom-line, top-line. Those are things that unfortunately we are not able to share. But that doesn’t mean that we don’t have internal targets for business development teams, one of the productivity teams, production teams, everything, those are all established and being tracked and we are on-the-job to try to reach breakeven and then exceed and bring in the benefit of this new dosage form to the company.
Rishi Kothari
But any sort of numbers from you guys. Just wanted to understand what’s the current status on the plant front and how exactly are we expecting you having an eventual commercialization of the product that we are seeing right now targeting from injectables.
Hitesh Windlass
Actually, I had explained this earlier in the call. We had started the year with the lines being ready. We identified the product portfolio in discussions with our customers and looking at-the-market volume data, we took the exhibit batches of these formulations after developing them in-house and then taking those batches, we generated the stability data and-or most of these products have now are in different stages of stability and some have been commercialized also. So the work that is involved in creating the right portfolio and going through the right steps in terms of regulatory quality, production, all have been successfully, you know, taking place one-by-one. And so you know that that’s sort of the update that we have shared already.
Rishi Kothari
So do we have any contribution from the injectables on our top-line right now?
Hitesh Windlass
Yes, we also shared in the beginning of the call that last year, we had INR6 crores in injectable sales and that was primarily, you know, in Q4.
Rishi Kothari
Okay. Okay. Thank you so much for. I’ll jump back-in queue. Thank
Operator
You. We take the next question from the line of Samarth Nagpal from Suranu Family Office. Please proceed.
Unidentified Participant
Hi,. Congratulations on a great year. Most of the questions have been answered. Just wanted to understand one thing. On the Trade Generics business, I mean what is the kind of structure we have and I mean how do we penetrate the market and how do we scale it up? So if you could just give some idea around it because I just wanted a fair bit of clarity in how many states are we present and what is our team structure like so that we are able to maintain our working capital also and gain market traction market.
Hitesh Windlass
Sure. See, first of all, the market structure as very, very distributed. So for example, I’ve spoken about in the past also that currently we are catering to about close to 1,000 stockists or distributors. And if we are to cover the whole of India from an opportunity perspective, then we have to go to somewhere like 5,000, 6,000 stock is and in fact the larger guys will have even more. So and so the structure therefore and you cannot really build a sales force to cover stock is like in branded generics people do. So it has to be a manpower light model.
However, in some cases where you know there is room and there is opportunity, then you do have to add people. So you have to be more geography specific. So like, for example, in UP, there are you know districts which one district has like 2000 villages, you. So there is huge, huge geographic spread. You can’t have zero manpower, but you cannot also not have a very-high manpower. So you have to take the staffing decisions based on the local needs of that area and then obviously choose the stockist also correctly and then have the right terms and the right discipline of working with them so that you don’t have problems in rig in day-to-day working.
So the structure is designed from ground-up, keeping this in perspective, whether it is on the IT systems side, whether it is on the sales team selection and appointment, whether it is in their incentivization structure. Even from the perspective of sales promotion, you know what kind of schemes that are developed for those to engage with us and increase business with us. All of this is designed ground-up. Now I will also tell you that it’s not a one-size fits-all strategy. So what we have to do in UP is very different from what we do in, let us say, in Karnataka or in Maharashtra. Even the kind of products that are being sold-in these geographies Geographies becomes different because of the prevailing nature of, let’s say, poverty and the kind of disease profile that you know is faced by the target population. So we have to go sort of and design not by our own view of how it should be, but what is the most efficient way to target the local opportunity. And that’s how we are building it.
Unidentified Participant
Got it, Hitesh. I think that really explains well the entire ecosystem because what — the idea I had was that it is very easy to enter the markets, have the stock is and everything, but how do you ensure that in the hinterlands, your product is actually selling the right product is there and the sales are actually converting, the product placement is right. So that really explains it well and should help us scale further also. Hitesh, just one minor question. On our employee expenses, I think we had that minimum wage criteria last year. So is it fair to assume that this year, the amount of capex we are doing or whatever the team size be, the employee expenses should streamline I mean, there would not be a major bump-up in that. Is that? Is it fair to assume that?
Hitesh Windlass
So at least whatever increase in costs will be there will be there in terms of the increments on the existing employees they could — and
Komal Gupta
Capitalized, we will have basic manpower on. But we don’t expect a huge bump like we had versus FY ’24 in FY. That’s fair to say. And minimum wage also, I hope now this year there will be no increase coming right.
Hitesh Windlass
Then our employee cost also has our ESOP costs in there. So that — non-cash. Non-cash I might be there.
Unidentified Participant
I think that’s fair enough. I think thank you, Hitesh and Gomal and I think it’s been a great performance and it’s lovely to see the way we are managing the business. So happy to be a shareholder also. Thank you so much.
Hitesh Windlass
Thank you.
Komal Gupta
Thanks so much for the time.
Hitesh Windlass
Thank you. Yeah, thank you,
Operator
Thank you. Before we take the next question, in order to ensure that the management is able to address questions from all the participants in the conference, please limit your questions to one per participant. The next question is from the line of Kothari from Eye. Please proceed. Sorry to interrupt Mr, could you please confuse us to the device
Hitesh Windlass
At all the audio was very broken. May I ask the moderator to request the questionnaire again
Operator
Could you please take the next question. We take the next question from the line of Aniket Nikum from ABN Capital. Please proceed.
Unidentified Participant
Hello. Am I audible?
Hitesh Windlass
Yes.
Komal Gupta
Yes,
Unidentified Participant
Hi. Firstly, congratulations on a good set of numbers and the progress you’ve done over the last two years. It’s been — it’s been really good to see that play-out. I have two questions, ma’am. First question was, you sort of said that with our current capacity and the new plant on the oral solid side, we can go to, say, Call-IT INR1,000 plus odd crores. And in that context, obviously, we’ve accumulated, I think around, Call-IT INR250 odd crores of cash, right, with each year of significant cash generation. So just wanted maybe a little bit of your folks view on how are you thinking about the capital allocation here? I know we’ve — you’ve mentioned a little bit before about inorganic opportunities and so on. So what’s the thought process there? Do you think you want to do some organic CapEx or what other opportunities are you looking at as you evaluate?
Komal Gupta
So Anikesh, as we have been maintaining, we want to expand homewise. We keep exploring several options for this for M&A, as you rightly mentioned. If we get an opportunity which fits in properly, synergic fit, we would go-ahead and do that. As you also mentioned, we have sufficient cash-in place and debt taking capability is also there. So there is no restriction in terms of our size. However, if we don’t find something that you know where we don’t have to do the job of making business good we can do and go for organic capex.
However, that we would take once injectables business is stabilized, doesn’t need mainly our bandwidth, so that then we can actually look at building a good facility and also building business there. That’s the plan in terms of capital allocation. In terms of dividend, we hope to continue to always pay the dividends as per the policy of 20% of profit unless there is, you know, there is any specific — so we don’t see a reason to make an exception to it. So that’s broadly the plan. And the capex for Plant 6 during this year in FY ’26, which has to happen, that will happen.
Unidentified Participant
Okay, got it. No, that’s helpful. And then the bookkeeping question. Can you quantify what is the case?
Operator
Hello. Could you please return to the question queue as there are several participants waiting for that.
Unidentified Participant
Okay. All that.
Operator
Thank you. I would like to remind participants that you may limit your questions to one per participant. The next question is from the line of Karthik from Suyesh Advisors. Please proceed.
Karthi Keyan
Yeah, good afternoon. I hope I’m audible. The two-parts to my question on the trade business. One is, can you share the current split of your business in terms of acute versus chronic and how do you see that evolving over a period of time? And the second has to do with the distribution that you spoke about. Would it help partnering with somebody like a who has a large chain or somebody who is an online seller or would that help you accelerate your growth and economics, of course? So two-parts to my question.
Hitesh Windlass
In terms of chronic we have largely remained similar. You know, whatever changes there are is there you know,
Komal Gupta
40%. So chronic and subchronic around 60% and acute 40%, right? That stays the way.
Hitesh Windlass
And I’m sorry, we could not very clearly hear your second part of the question. Could you please ask yeah.
Karthi Keyan
So A, I was saying how would this evolve over the next three-year period? Would you see an increase in the chronic profile by any chance? And second part is on the distribution strategy and I was asking you, would it help partnering with somebody like a who has a large reach or an online seller who may be able to carry you into these hinter lands, you know, and whether the economics would be reasonable for that? That’s the question.
Hitesh Windlass
Yeah. Yeah. See, MedPlus is definitely a partner already with us because they are a CMO, a customer for us. They have this white-label products, which they get manufactured from us. And we always look at all these partnerships of — you know, which can help us sometimes they come in the form of customers wanting to get their brands manufactured when it will be a CDMO. We normally, you know the hinter land market or the rural market has not had a very strong even epharmacy kind of penetration.
And so you know, while we have placed product and it has not really moved as much. So mostly the offline channel that dominates in the smaller, smaller towns and villages. So that remains and we are always open for more-and-more you know, broadening of this channel. And as more organized retailers come in, this will again become an opportunity. So we are definitely open to exploring and we continue to do that even now.
Karthi Keyan
Sure. Thanks. Thanks for answering.
Operator
Thank you. Thank you, members of the management. On behalf of Biotech Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.
Komal Gupta
Thank you. Thank you everyone.
Hitesh Windlass
Thank you very much