Zim Laboratories Ltd (NSE: ZIMLAB) Q4 2025 Earnings Call dated May. 22, 2025
Corporate Participants:
Unidentified Speaker
Anwar S. Daud
Shyam Mohan Patro
Chandrashekhar Mainde
Zulfiquar Kamal — Zim Laboratories Ltd
Zain Daud — Investor Relations Incharge
Analysts:
Unidentified Participant
Deepika Sharma — Analyst
Dhwanil Desai — Analyst
Ankit Gupta — Analyst
Majid Ahamed — Analyst
Rohit — Analyst
Kartik — Analyst
Shyam — Analyst
Nikhil — Analyst
Shreya Chatterjee — Analyst
Ashwin Reddy — Analyst
Rohan Patel — Analyst
Presentation:
operator
Please wait while you are joined to the conference. The conference is now being recorded . Ladies and gentlemen, Good day and welcome to The Zim Laboratories Limited Q4 and FY25 earnings conference call hosted by Goindia Advisors. As a reminder, all participant line will be in listen only mode and there will be an opportunity for you to ask question after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing 0 on your touch tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Deepika Sharma from Go India Advisors. Thank you. And over to you ma’ am.
Deepika Sharma — Analyst
Thank you, Sejal. Good afternoon everyone and welcome to the. Q4 and FY25 earnings call of SIM Laboratories Limited. We have on the call Dr. Anwar Daud, Chairman and Managing Director. Mr. Zulfika Kamal, Director Finance. Mr. Shyam Mohan Petro, Chief Financial Officer. Mrs. Zandaut, Investor Relations. We must remind you that the discussion. On today’s call may include certain forward looking statements and must be therefore viewed in conjunction with the risks that the company may faces. May I now request the management to take us through the financials and business outlook subsequent to which we will open the floor for Q and A. Thank you. And over to you sir.
Anwar S. Daud
Thank you, Deepika. Good afternoon to everyone. This is Anwar Dawood speaking. A warm welcome to all of you joining us today for Zinn Laboratories Limited’s earnings conference call for the fourth quarter and full year ended 3-31-25. I trust you’ve had the opportunity to review our results and the earnings presentation available on the exchange. F25 has been a pivotal year for Zim. A year marked by focused strategic execution, disciplined innovation and resilient business expansion amidst a challenging external environment. Despite headwinds, particularly in certain legacy markets impacted by currency volatility and geopolitical uncertainty, our team responded with agility and commitment delivering steady growth across key strategic segments.
Let me begin by sharing some key performance highlights. Of course, Mr. Patro, who will follow me will be able to further elaborate on these numbers as well. In Q4 financial year 25, Zim reported a total operating income of 1087 billion with EBITDA and PAT margins at 15% and 4.5% respectively. For the full year, FY25 total revenue reached 3790 million with EBITDA margin at 13.1% and PAT margin at 3.2%. Our pharmaceutical continued to be the cornerstone of our top line contributing 75% of the total revenue while nutraceuticals accounted for 25%. Export markets contributed 83% of the total revenue.
A key growth driver this year I am pleased to inform has been the strong performance of our innovation led segments. The new innovative products and Oral thin film sales together accounted for 624 million rupees or 16.5% of total. The NIP segment contributed 437 million while OTF Oral 10 Philip contributed 186 million rupees. This momentum was fueled by licensing and co development partnerships especially in regulated markets which accounted for 98 million NIP plus OTF contributions to total operating income was 19% in financial year 25. In line with our global expansion strategy, we entered into strategic collaboration including a partnership with a local UAE company to scale our oral 10 film footprint across the GTC region.
We also established a scientific office in the Middle east and focused on our Australian subsidiary DIMTAS PTY Ltd with regulatory filings for innovative products currently in progress. They include oral Thin film as well as the complex products that we have developed and are submitting in Europe and uk. To drive market penetration and accelerate international growth, we appointed dedicated regional teams and seasoned business development leaders across various segments. On the regulatory and filings front, we maintained strong momentum. In FY25 we completed 23 NIP filings for 6 molecules, 17 OTF filings for 5 molecules and 10 FF filings for 5 molecules.
In the regulatory, pharmacy and row markets these included 5 NIP filings for 4 molecules and 6 OTF filings for 2 molecules. In the EU, taking cumulative EU NIP filings from 7 to date and 1 NIP and 1 OTF filing. In Australia through our subsidiary Zimtas Private Limited, we also received marketing authorization during the year for Azithromycin oral suspension and dimethyl fumarate nip. Additionally, our partners secured approval for Bupurinogen Suniling World Villain OTF across Europe. On the business front, revenues reached 665 million contributing 17% to the total operating income supported by continued supply of high margin pharmaceuticals and nutraceutical products to government institutions.
Our differentiated offerings especially in NIP and OTF are gaining greater adoption in in institutional channels as well. In terms of infrastructure, FY25 marked the completion of key strategic CapEx projects including a dedicated urology suite for NIB products, a specialized liquid and pellet technology suite for high value OTC products and we also made targeted investments in R and D accounting for 8.8% of total operating income along with advancements in drug delivery technologies, further enhancing our innovation capability. As of now, Our pipeline includes 12 NIP products with development of eight already completed and the remaining will be finalized and filed through financial year 26, positioning us for future growth.
There is a second generation of NIP pipeline available with us and work has already begun on the same. While we remain mindful of macroeconomic and geopolitical risks, especially in volatile markets, we continue to operate within a robust risk mitigation framework. Our conscious decision to avoid high risk orders helped safeguard our financial health and maintain business continuity. With that I now hand over to Mr. Shah Mohan, Patron who will walk you through the financial highlights for Q4 and financial year 25 in greater detail. Over to you Shah.
Shyam Mohan Patro
Good afternoon everyone and thank you sir. I will now walk through you the key financial highlights for the fourth quarter and full financial year ended on 31st March 25th. Let me start with quarter four financial at 25 highlights the total operating income stood at rupees 1087 million reflecting a 12.9% increase on a quarter to quarter basis and a 7.7% decline on a year in year basis. EBITDA came in at 163 million by 22.5% sequentially to 5.2% lower on year to year basis. EBITDA margin for the quarter improved to 15% PAT, I.e. profit after tax was at 49 million marking a 2022.1% increase on quarter to quarter basis but a 39.7% decline compared to quarter four of FY24.
The PAT margin stood at 4.5%. The pharmaceutical business contributed to 891 million rupees accounting for 82% the total operating income reflecting a 20.6% growth over the previous quarter and a 8.8% decline compared to the same quarter last year. The nutraceutical business contributed about rupees under the 96 million comparison by 80% of total operating income. The R and D investment during the quarter stood at rupees 76 Lillian accounting for 7% of the total. The capex for the quarter was 65 million rupees primarily directed towards infrastructure upgrades and specialized facility enhancement. Now we’ll move to the full year FY25 financial year 25 performance the total operating income for the financial year 25 student 3790 million rupees reflecting a 3.2% year on year growth from 3674 million since last year.
EBITDA increased by 6.4% to 495 million rupees up from 460 million rupees in the previous year with an improvement of EBITDA margin. Improved EBITDA margin of 13.1%. PAT for the year was rupees 122 million resulting a PAT resulting in a PAT margin of 3.2%. The pharmaceutical business contributed rupees 2,836 million accounting for 75% the total revenue. And the nutraceutical business contributed rupees 954 million accounting for 25% the total revenue export market contributed rupees 3,125 million representing 83% of the total operating income. The domestic market recorded rupees 665 million contributing 17% of the total operating revenue.
Total operating income annual capex amounted to rupees 360 million. Supporting capacity expansion and product development. The finance cost increased to rupees 114 million up from rupees 69 million in last year primarily due to increased borrowing. The gearing ratio student at 44% with total borrowing at 1,122 million rupees. That concludes my report. I’ll now hand over back for a QA session. Thank you.
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 touch tone 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 Dwanel Desai from Total Capital. Please go ahead.
Dhwanil Desai — Analyst
Hi, good afternoon sir. So my first question is on the, you know, nit. So I think in the Europe market now we have two, you know, regulatory approvals on our name and one for the partner. So going forward, you know, how do we see the scale up of these three products you know in the European market especially you know, the Nurex Farm. I think it’s. That’s a pretty large product as far as I understand and very few competitors in this space. So what is the indication that we are getting from our partners in terms of scale up and can any of this product be more than $10 million kind of revenue potential?
Anwar S. Daud
Yeah, a few of these products certainly have that potential and we have agreements not at liberty to disclose all of them at the moment which points towards this. We just. Let me take a moment to introduce our technical director Dr. Dr. Chandrasekhar Mendez who will answer, give a few of the answers as well during this question and answer session so you can introduce yourself and Then I’ll continue with my answer.
Chandrashekhar Mainde
I am Dr. Mind and I’m here to answer your questions about some of the NIP products. So I just, I want to mention about what your first question. The launch of the product is a complex procedure in the euro and there is a multiple languages and multiple artworks of the products has to be made. And particularly you have asked question about the new rich pharma. They are already started the preparation for this thing and expected to launch in another two quarters. About these products.
Dhwanil Desai — Analyst
Yeah, I mean how should we look at the, you know, revenue potential of these three products in next two years in this market is what probably would want to understand.
Anwar S. Daud
It’s true only you know that there are a lot of, there’s a lot of geopolitical uncertainty. It’s an era of shortages. We are well positioned but giving numbers at this moment is a little too early perhaps, you know, as these mas start coming in and our supplies actually start, that’s when we will be in a much better place to be able to answer, you know, make answers on the number part. But certainly, you know, historically these products, and we have been speaking about these products in the way in our investor call as well, they have a, you know, they have a very interesting global presence and we seem to be positioned well with some of these products.
The competitive space is quite thin. So we are hopeful and hope to perform on the lines that our stakeholders, investors feel this company will be able to do.
Dhwanil Desai — Analyst
I appreciate that. The second question is, you know, in last, you know, two and a half, three years we have almost spent 150 crores in gross block. So now our gross log has moved from 190 to 340 odd crores. So you know, how should we see the utilization of this incremental Capex that we have done, you know, in next couple of years and at a peak potential, should we assume 650, 700 crore kind of a revenue potential as and when we utilized it to the operator optimal level if you can throw some light on that.
Anwar S. Daud
Yes, in one world if you ask me. Yes, that’s right. We are building Capex for the future. We know that the products we have developed have potential. We have had early successes in the mas, receiving mas and our filing strategies in place and our partnerships are in place as well. There’s a rapid clip. If you see the under licensing income of this year you will see the difference as well. So there’s a lot of confidence as them as well as its partners and their belief in these products which we have developed for the markets.
Dhwanil Desai — Analyst
Got it. And last question. So on domestic side you know we our absolute revenue barring the deemed export is actually degrown from last year. While you know few quarters back we were very you know optimistic about domestic market especially with our products launched in tie up with the DRL for the urology side. So you know if you can give some color on that and you know how should we look at domestic revenue growth going into FY26 and maybe two, three years perspective?
Anwar S. Daud
Well I actually also spoke about you know the there being attraction in the form of several NIP products being enlisted by the institutional buyer. So that’s a very positive sign that there are institutional buyers now who you know want to favor these kind of product which add convenience and treatment adherence to the patients. There is a pipeline of product which are which have been filed with CDSCO as well and we are in the process of receiving approvals for these products in India as well. So and we will disclose these developments as they occur in due course.
So we are you know we are confident, we are positive that over a course of time I, I don’t know because like you know when we’ll be able to give you the exact numbers but you will see the domestic business also growing along with you know the kind of margins that these NIP products command globally as well. So that’s the strategy. We are on that. And last year we saw several enlistments and about Dr. Reddy, this is a one off year because they launched the year before that. So perhaps it’s only one product but Dr.
Reddy has shown interest in further products to be partnered with us. So that’s the positive sign that we have an ongoing relationship and partnership. And this product also hopefully because it’s part of a very of a portfolio that they seem to be keen and aggressive in developing. So it will whatever the hiccup this year will not be there the next year and we are still positive. I have more questions but I’ll come back. Thank you.
operator
Thank you. The next question is from the line of Ankit Gupta from Bamboo Capital. Please go ahead.
Ankit Gupta — Analyst
Thanks for the opportunity sir. You know we have almost you know four products for which we have received the regulatory approval. But for the then we are yet to start the commercial supplies for one of the products you are for which we have a tie up the new pharma you have said we should be launching in another two quarters but the three other products, dimethyl fumarate, I think that’s a very big product for multiple cirrhosis And Azithromycin suspension. And is that repeated? When do you expect the commercial supplies to start?
Chandrashekhar Mainde
Yeah, this is Dr. Maine. They already we have a tie up with our partner and we to inform you that there is a complex process. Once we get approval particularly all partners wants to market the product. So we need to some procedures call the duplications of the licenses to the partners name. And it is taking time for the both the product diameter and fumarate and Azithromycin suspension. These processes has been started. So we are hopeful to launch this product in the third quarter. Third quarter mostly in the end of the third quarter this product will be in the Europe.
Ankit Gupta — Analyst
And for rest of the products for which we have done the regulatory filing in our. You know, awaiting regulatory approvals. When are we expecting you know, for the urology?
Chandrashekhar Mainde
As per the. Most of our submissions are done through the. What we call a DCP procedure decentralized procedure in which we have filed in the many countries. So most of our products whatever six, seven products we file already the first stage of the validation means acceptance of product. For the further further evaluation has has been done. And the most of the cases the calendar has already started. So in some of the cases we have at the different stages of the calendar somewhere calendar has been stopped because we have to answer some queries. So overall I will say that we are on the track and we are not out of the track for any product.
We are on the way of answering all the queries. So hopefully we feel that most of the products can start getting the Ms. In the last quarter or the beginning of the next this thing. Because we are expecting that if anything is not specific then in the next year first quarter we are expecting at least 2,3 ma.
Ankit Gupta — Analyst
So in FY27, second half will have you know, three commercial launches which would definitely happen. And hopefully we should at least in a FY27 and or Q1 of FY28, we should see at least 3, 4 approvals is what you are indicating.
Anwar S. Daud
That’s what it looks like. Everything going well. That’s what it looks like.
Ankit Gupta — Analyst
Sure sir. On on, you know, on the margins front we saw a significant jump in you know, our NIP + OTF they grew by almost, you know, 48. Sorry, 64 in this financial year. But despite that our margins have, you know, have improved slightly from 11% to 12%. In fact, you know, FY24 was a one off year. If we compare even with the FY23, we have not, you know, our margins have have actually declined from 13% to 12% in FY25 compared to FY23. So you know, with NIP and ODS increasing despite that, our margins have not, you know, improved in FY25.
So what has been the reason for that?
Anwar S. Daud
And how do you see the margin of average margin? Right.
Ankit Gupta — Analyst
EBITDA margins? I’m talking about the operating profit margin.
Anwar S. Daud
So maybe Our Finance Director Mr. Kamal will answer this. Well, being prepared for that.
Zulfiquar Kamal — Zim Laboratories Ltd
Yeah. So as you are aware our ebitda margin for 24 was 12.7 versus our EBITDA margin for 25 is 13.1. So there is a definitely slight improvement. But you are right in saying that the contribution to NIP product will, if it is increased further, there will be a sufficient improvement in the margin going forward. So once the NIP product, ODS product, what we are aiming at, once they increase, the EBITDA margin will also increase. And overall turnover, what we had started with the year for the target, as soon as the turnover gets increased, our EBITDA market will have a direct impact on the EBITDA because the OPEX cost and other costs will practically remain the same.
Ankit Gupta — Analyst
One, you know, question or if you look at the past four or five years, our revenues have remain in a range of around 300 to 400 crore from FY21 to FY25. Our EBITDA margin despite all the effort that we are doing have remained from in the range of 40 to 52 crore in the past five years. Now with so much capex being done, the NIP being commercialized next two years, can we expect that FY 26, 27, we should start growing at 25, 30% and our margins should increase to 15, 17%. Will that be a realistic expectation? With so much of expectation, that is.
Anwar S. Daud
A realistic expectation and there are, there is some reason for that. Because see the business, the business is about in the range of 20% of their IP product. So and the rest of the products on which the company works are all legacy products even though they are complex. There is a, the competitive space is not so rare. The price pressure in these products is being more than upset by the new products and the company is in the stage of a pivot. So it is letting go of some businesses as well so that, you know, because they don’t make any sense for the future of what ZIM sees itself as becoming.
So that could, I mean all of these factors together point to a strategy. And just to you know, sum it up, we are on a strategy and on the strategy, I think we are on the right track because the strategy of the company has been spelt out to its stakeholders and investors since the beginning. So shift from the old legacy products to new innovative products increasing their business tie ups with strategic partners submissions, going for these, the kind of product which we. I think this company has the strength to do all that is going on in a strategy so sometimes a mix of that is the result that you see in the financial statement and I’ll, you know, just to explain it a little bit more, I think Mr.
Kamal will.
Zulfiquar Kamal — Zim Laboratories Ltd
Yeah. So as you rightly mentioned, the top line will be totally dependent on the increase in the NIP product and the regulated market sale. But as you have seen there is a operational operating cost has been rationalized. It is now in the similar line and once the business mix changes and the business mix grows overall margin will definitely improve both in the top line as far as and in the EBITDA margin also.
operator
Thank you. Sorry to interrupt sir, I would request you to rejoin the queue for your follow up question. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants please limit your question to three per participant. If you have a follow up question I would request you to rejoin the queue. The next question is from the line of Majid Ahmed from Pinpoint X Capital. Please go ahead.
Majid Ahamed — Analyst
Good afternoon sir. I’m audible yes, yes, yes sir. Thank you for the opportunity sir. My first question that I have is like of the NIP and all these filings have been done how much is now currently contributing to the pharmaceutical FY25.
Zulfiquar Kamal — Zim Laboratories Ltd
Mentioned that it is contributing around 16.4% of the revenue.
Majid Ahamed — Analyst
Okay, okay. As per your internal target what type of ballpark number can you be going forward contribution in next two or three years.
Zulfiquar Kamal — Zim Laboratories Ltd
So as you are aware we have already as per the strategy, what we have already mentioned earlier Dr. Dawood that our strategy is to go in for the regulated market and whatever growth what we are going to foresee coming from the MA registered and under registration. So it will definitely increase and it will be going around 30 to 40% in the coming years. And for that the CAPEX already as mentioned has been all completed, capacity have been built so only there is a certain regulatory delays which is not in our hands going forward forward we expect that this contribution to overall sales of NIP and ODS will increase.
Majid Ahamed — Analyst
Okay, thank you sir. And going forward sir, the plan, is there a plan to deleverage the balance sheet or is are you going to do even further capex? I can get some Idea on that?
Zulfiquar Kamal — Zim Laboratories Ltd
No, as of now the capex whatever is in the normal stage will be there to just to upgrade the facility. No further big capex is expected. We are awaiting all the MAs and registration to utilize our the newly built capacities so it will be a better utilization of our. There’ll be a major improvement in the asset turnover ratio going forward. No further major CAPEX is now expected.
Majid Ahamed — Analyst
Okay and what. What is the upcoming working capital days that you’re looking for going forward? Will it be remaining same or it would increase going forward?
Zulfiquar Kamal — Zim Laboratories Ltd
It is on the range the inventory raises around 8081 days so it will be remaining the same debtors will. As of now it is on 100 day cycle but it is. We are improving it to 90 days rest the day it is overall GCA days which is around 200223 as of now we are further expecting to reduce it further and net GCA if you see it is on the range of around 6063 days which will be continuing on the same line.
Majid Ahamed — Analyst
Finally sir, last question is like what like what is your projection like your fixed asset turnover from this incremental capex you made any sort of numbers you.
Zulfiquar Kamal — Zim Laboratories Ltd
Can give a fixed turnover ratio. As I mentioned it will all depend on the getting the ma but the asset part is not fixed only the turnover will improve so definitely they will find an improvement in the at the turnover ratio.
Majid Ahamed — Analyst
Thank you sir. Holler.
operator
Thank you. Ladies and gentlemen, please limit your question to two per participant. If you have a follow up question I would request you to rejoin the queue. The next question is from the line of Rohit from. I thought pms. Please go ahead.
Rohit — Analyst
Good afternoon sir. Sir, just first I wanted to get a clarity. So in terms of your nip from the regulated markets you are expecting revenues in this year by end of Q3 and Q4, is that understanding correct? That’s my first.
Anwar S. Daud
Significant director. That’s what we are expecting. Although you know that you can’t really predict how the assessors will when the MAS will really come but we are expecting. We have had with the filing the queries that have been raised and the way we have answered them we do expect.
Rohit — Analyst
No, no, I’m saying so for right now you have Dimethyl Fumarate and Buprenorphone. So in these two products you are expecting revenue in FY26 from the regulated markets is my question.
Anwar S. Daud
Yeah, that’s right. One, you know one aside I want to give you is that these products have already. You know we have started marketing these in the emerging markets. These products, 16% of the turnover of these NIP products came from the emerging market and they had a very positive contribution to their data in general. So the kind of margin we have, we have imagined and the kind of business we imagine for these products, the indicative signs today are very positive for us and quite heartening.
Rohit — Analyst
Right. So sir, I mean just asking a similar question what was done asked by previous participants. So sir, you mentioned that these products and we’ve seen very strong growth and we’re also saying that these margins are better but it is not yet visible in the overall margins yet. I’m talking about operating margins. So this is about depreciation and interest costs also. So we’ve seen that if I see your base business X of NIP and OTF and license income that has actually declined from FY23 from about 380 crores to about 315, 320 crores in the last two years and it has.
Last year also it declined and this year also it has declined. So what is leading to that kind of decline? And notwithstanding that, will you see margins improve or will we have to again see very marginal improvement in margins if. The basis is the number because.
Zulfiquar Kamal — Zim Laboratories Ltd
This number has got declined. I am not able to understand because at per my.
Rohit — Analyst
No, no. Let me clarify sir. Let me clarify sir. I’m saying the. If I look at your overall turnover today, sir. Yeah. So this. So and I’m excluding the NIP and OTF from that. So this year we have done 379 crores of income excluding other income. And if we exclude the NIP and OTF income of 62 crores then our revenue is around 317 crores. If I do the same analysis for FY23 sir, this revenue was 382 crores which means that some of the business which we call as base business has reduced. Now Mr. Dawood has said that we are also removing some business as maybe some of the low margin business we are removing etc. Maybe that is also there.
But I just wanted to understand that this expansion in NIP and OTF business, even if it is in emerging markets which is also high margin as per what Mr. Dawood just said. I wanted to understand when will we see that expansion in the overall numbers for the company. Will that be in FY26 or there is still some more culling out or more issues in the base business and which will sort of hinder that expansion in margins for us to be seen, Maybe it is more towards FY27. So I just wanted to understand that.
Zulfiquar Kamal — Zim Laboratories Ltd
Yeah. So this is again Zulfikar Kamal speaking. So you are very rightly said that, but you have said it in a different manner. The increase in NIP and ODF is our strategy and NIP product for Europe regulated market. As Dr. Dawd mentioned, we are as part of a strategy going on. But again, regarding the legacy product, there is a little bit downfall on the PFI side because of the headwinds which he has mentioned and the currency issues which you are facing, which has now been solved. And if you remember the last year there was one of our customer who has been delayed.
There was some currency issue with them. So that order delayed in this year which has now been taken care of. And for the coming year our legacy business will be stabilized at the rate which was going on. And going forward to the next question regarding NIP and odf, all these products have been now under registration. The agreements are in place and some part of like today that we have mentioned. This year it is 16%. We are assume we are definitely projecting a growth in the NIP this year also. But the exact estimate we will be giving only after first quarter that NIP is a contribution of NIP and OTF going forward.
Rohit — Analyst
Understood. And sir, one product I wanted to understand for this Dimethyl fumerate is a big product. And I think a year or two back, I think a lot of the generic versions, their marketing authorizations are also evoked. So right now, in terms of this product, what kind of competition is there and what is your expectations on this product for us and do we have multiple partners for this or are we going live for the opioid product only with one single partner? So if you can maybe share whatever you can share with us.
Anwar S. Daud
So sometimes these kind of events are also good news for some companies. And Dr. Mende will take you through the technology that we have and what opportunities we have on this product. Even though there were multiple partners and their mas were removed.
Chandrashekhar Mainde
I wish to inform you that this product is a very critical product and we have a something different technology from the Innovator product. In spite of different technology and different pharmaceutical system, we have. We have got a pharmaceutical equivalency and we have got a. And now we have already been in the talk with some of the companies for our specialized product including the. Including the Innovator Innovator who is marketing this product. Also we have a multiple partners as I mentioned earlier also now after the grant of ma, we are in the process of launching the product.
Launching the product means Particularly making that hard work then the preparation which market. So there is a language barrier. So many languages are there and some making the. Some leaflets and all this thing for this thing. This is taking a time. So. So as mentioned in the third quarter, third quarter you will see the power products in the market.
Rohit — Analyst
Got it sir. And sir, just technically one thing. So when we said so you will start selling, you will start booking revenues in the third quarter for your. For your partner, right? Or will the product on our partner.
Anwar S. Daud
So that’s the expectation. And just to add to what Dr. M. He made a technical statement. Our process is non infringing. The reason for which the. The MA was withdrawn was that their process actually infringed the originator process. So there are a lot of. There is some interest from potential partners whose MA was withdrawn as well for Zim’s product.
Rohit — Analyst
Right, Right Answer. Last question before I join that is that this partnership that you have with Global Pharma that you just announced last month, can you share some contours of that? What exactly will it be and when will. I mean what kind of opportunity we.
Anwar S. Daud
Have given all the information there. We are a very transparent company that way that whatever we can disclose has certainly been disclosed there. It’s for the entire Middle east and it’s Global Pharma. If you go on the website you will see the ownership as well. So you will understand it’s a very strong company. It’s like. It’s like a flagship for the country. And this partnership envisages long term relationship with the Global Pharma and Zim to put the oral film in the market and certainly a very interesting role for them to play in the Middle East.
Rohit — Analyst
Thank you.
Anwar S. Daud
And it’s a 10 year partnership.
operator
Thank you. The next question is from the line of Kartik from Samatva Investments. Please go ahead.
Kartik — Analyst
I hope I’m audible.
Anwar S. Daud
Yes.
Kartik — Analyst
Yes sir. The first question is since we already have few mas in our hand and few have come pretty recently and you have already clarified that the we can see the impact on the sales from Q3 this financial year onwards. Can you clarify when is your production scheduled? In order to revenue.
Anwar S. Daud
Productions are scheduled based upon the, you know, after the dress, the packaging and all those artwork and everything is finalized and it’s entirely in the hand of the partner. So once we receive the order, suddenly we start our manufacturing activities and we will schedule for some kind of a, you know, launch that they have. It will be well in advance certainly of their launch. But it’s difficult to predict when we will start manufacturing. We have, we have the cap, we have the capex, we have everything in place now and the agreement with the partners as well.
So now you know, just waiting for everything to fall through from the partner side so that we can be, you know, we can start our activity and they can be in the market.
Kartik — Analyst
Right, Right sir. So to get the sales from there I am hoping that either in Q1, this is, which is the current Q to the next quarter, we have to get the production done. So I’m hoping that all the procurement.
Anwar S. Daud
Will be clearer about the numbers by between Q1 to Q2 and we’ll be very happy to share them with you.
Kartik — Analyst
Yeah, so no, my question was around. So the procurement of the raw material, getting that and getting the packing material, getting the product dispatching, receiving there and then doing sales, all that should happen within the next four, five, four months, right?
Anwar S. Daud
Yes, we are expecting that.
Kartik — Analyst
Okay sir. Okay. So that my second question is. So we have, we have had the domestic revenue in the FY12. Hello, am I.
operator
Yes sir, we lost your audio. Can you please repeat your question? Thank you.
Kartik — Analyst
Sure. Am I, am I audible right now? Yes sir, you are. For domestic revenue for FY24 was 64.6 crores whereas in FY25 it declined to 53.6. I also understand that there was a statement made that voluntarily we are also not interested in certain low margin business that was there another statement saying there are headwinds with respect to volatility in certain markets because of currency. And also since I’m restricting my question to only domestic how much of this 17% degree growth is related to voluntary reduction and how much was regarding the market?
Anwar S. Daud
Well, it’s the market. This was an election year as you understand. You know, governments make institutions make their budgets only. Actually there’s a kind of stoppage or pause in orders from institutions during the election and after that there is a, there’s a road system. So this happens only once in five years. And that’s what happened this year as well. I’m sure this will pick up the pick up this year. But we will be as you, you know, you, you have also been able to repeat that for us that we are very mindful of not doing the things that other institutional players do.
We are enlisting our nip products and we’ll work in complex products. So those by definition are going to be. Although there’s an increase in a very heightened interest in these kind of products by institution and they have margins and less competitive space. But that’s the strategy to be in the institutional business and out licensing business in India with high margin products. And we certainly keep on sacrificing the low margin business.
Zulfiquar Kamal — Zim Laboratories Ltd
Yeah. There was an order of government of Maharashtra on 24 of around 20 crores which because of the election year of particular order was not received in the year ending March 25th. And it did not report for the next year. Only one order was there which has made a little bit of difference.
Kartik — Analyst
Great. Great. Just. Just related question to that domestic sphere itself. We have a star product at least within the urology space and which is an nip and we are doing it with our partner Dr. Reddy. How is the performance of that incremental growth happening in that market? Absolutely.
Chandrashekhar Mainde
At present Dr. Reddy has launched this product in the limited limited segment in limited states. And from this year onwards I think they are planning to take the products to the all. All the states they are marketing statewide. So we are expecting a growth from that.
Kartik — Analyst
Okay, sir. So the new urology suite that you have just done the Capex for, does that cater to this as well?
Anwar S. Daud
Yes. Great. I’ll join back in the queue after others. Thank you.
operator
Thank you. The next question is from the line of Shyam from Atlas Financial Partners. Please go ahead.
Shyam — Analyst
Thanks for the opportunity. My first question is with respect to how does ZEN plan to accelerate institutional channel penetration domestically especially for its differentiated MIP and OTF products?
Zulfiquar Kamal — Zim Laboratories Ltd
Can you repeat yourself, Shyam?
Shyam — Analyst
Sure. Okay. How are we planning to accelerate institutional channel penetration in domestic market especially for our NIP and OTF products?
Anwar S. Daud
Well, we are in the. As I already told you, there are two areas in which because BIM has a strength in the institutional market. So we have started registering these products with the institutional buyers and we have had a fair degree of success last year and the results will be there the next year in the domestic business as we go forward. That’s one. The second part is out licensing these kind of products to Indian partner. But we are, you know, being careful about the tie ups here because we don’t want the products to be compromised in our export business where we have already signed decent agreements.
So it’s taking us some time to select the right partner for the right product. And we are in the process of appointing a domestic out licensing executive who understands these nuances of these products. And with the right connection perhaps that strategy would actually add to more structured format for the out licensing business domestically.
Shyam — Analyst
Are we in discussion for new MA for institutional channel in domestic markets for our MIP products?
Anwar S. Daud
Yes, that’s what I said. We are Enlisting these products in the institutional markets. Okay. Last year.
Shyam — Analyst
Okay. Okay. So my next question with respect to the when strategic intend to focus on Australia through its subsidiary. So if you can put some color on that, how it would be then that would be covered over there.
Zulfiquar Kamal — Zim Laboratories Ltd
Yeah. So in Australia we have filed two products. One is NIP and one is ODF which has already been mentioned by Dr. Gauss and we are expecting to get their emails immediately. We are already in discussion with major distributors as product are registered in our own subsidiary and the MA belongs to Zim itself. So we are finalizing that marketing agreement and by, within, by second quarter or third quarter we will be able to have a clear idea of launch about the.
Of launching of these products.
Shyam — Analyst
So how big is the market we expecting in Australia and what will the contribution in our top line from Australia?
Zulfiquar Kamal — Zim Laboratories Ltd
As of now it is too early because once the MA and the price are fixed, then only we’ll be able to get the proper projections from the marketing and, and the distributors. And that time we’ll be able to understand the exact margin.
Shyam — Analyst
Okay, and so my next question with respect to the research experiment that we are doing. What is the proportion that is going into salaries and what is the proportion it is going into buying of testing machine or other.
Other expenses?
Zulfiquar Kamal — Zim Laboratories Ltd
So R D expenses. As informed to you earlier, it is around 8.5% and which is, which will be on the similar line going forward because we are under the now started developing our NIP2 line and this will be giving us the technology and what Dr. Daud and Dr. Mendez are working on it.
operator
Thank you. The next question is from the line of Nikhil from JM Financial family office. Please go ahead.
Nikhil — Analyst
Yeah, hi. You know, I’m still new to the company. One thing I wanted to understand is that if I see the historical growth rates, etc. You know, over the last many years the growth rate has been fairly muted and now we are talking about say something like a 25, 30% growth rate. In the next say two, three years. I’m just trying to think, you know, one, why has the past performance been so slow? Is it because the product approvals have taken time or is it that the strategy was getting built out at that point of time and to avoid a similar slow phase of growth say in the next 10 years. Just, I’m just saying, you know, in a big picture way, what is the steps which we are taking that this thing doesn’t repeat in the next 10 years? Basically so.
Zain Daud — Investor Relations Incharge
Hi. Hi Nikhil, this is Zaid. So I think like you rightly said, in the last few years, what had. Happened is once we took a strategic. Pivot, the company of this size in a pharma industry, there is only limited amount of investment and limited amount of focus we can have. So we decided that our strategy, like we have told investors before, is the European developed market strategy. So once we started that strategy, obviously some of the, some of the focus was on that. And like any strategy in pharma, it takes some years to progress and bear fruits. So I think this time when we have this strategy, once the strategy play out, Dr. Daud will explain to you further how this strategy is going to play out in the next few years. It’s a company which is pivoting from the row domestic emerging market business into the regulated markets business. So the capital investments, the recruitment, everything is being done keeping in mind our products and where we want to be in the next few years.
Anwar S. Daud
So the pivot itself has dictated the strategy of, you know, if you see the internal product mix, there’s a big difference. You know, the, the contribution is now nutraceutical is about 15%. Then the contribution by the NIP and ODS business is in the range of 16%. And this is just the row and emerging market business. I also spoke about the gross margin improvement, how even the small business, about 10% of the total business, has contributed to the increase in margin. So all that is also reflected even though the top line remains the same, the mas coming in, the patents.
We have the kind of agreement income that we have. You know, licensing income is a very good indicator of the quality of your doer because we have the agreements are the outlines and thing. Deals are with companies in the size of a, you know, between 350 million to about one and a half billion. And they will not sign these agreements unless they are confident of the product as well as the quality of the dojo and the quality of the submission. So all that is there, which gives us a lot of satisfaction that we seem to be on the right track.
And top line is not for a company like this. Top line is not the only indicator of success.
Nikhil — Analyst
No, I’m sure you’re right, but it’s just that, you know, finally there has to be growth, right? And the strategy, as you’re rightly saying, is tuned to that going forward. So I understand it’s taken some bit of time, but with the pipeline which is in place, as you’re saying, that we should be now growing in the range of say 25, 30%, say in.
Anwar S. Daud
The near term. In the next two years. The first question was about this and I mean it’s a kind of a yes or no required from us in the next two or three years. Do you see the company growing? And we said yes certainly because all the MAs are coming in now and they’re coming in the three more quarters that we have spoken about. And some of the mas which are already there, there are, there’s a pretty active interface with the partner on the artwork and all other things. And along with his the kind of the intent to place order and the kind of quantities they want to buy initially our marketing, marketing team is also growing and we’ll continue that for the next few years as well.
Nikhil — Analyst
Understood. And the last bit would be, you know, as these products come into actual market, how do you see the operating the EBITDA margin profile really changing? Like what kind of improvement one can expect say the next to three years.
Zulfiquar Kamal — Zim Laboratories Ltd
So already remember we have mentioned earlier the EBITA margin will definitely have a big impact on it because the operating income, everything has been rationalized. The R and D expenses, even though it is little bit high, we, we foresee a good EBITA margin on upper teams. We are expecting that going forward.
Nikhil — Analyst
Understood.Perfect. Great. Thank you so much.
Zulfiquar Kamal — Zim Laboratories Ltd
Thank you so much.
operator
Thank you. The next question is from the line of Shreya Chatterjee from MAIQ Capital. Please go ahead.
Shreya Chatterjee — Analyst
Thank you sir for taking my question. So my first question is like with so many developments happening in the NIP OTS side and then base business also suffering, could you please give us like a guidance, revenue guidance in the next two to three years and when do you see the margin inflection happening? EBITDA margin inflection happening? Would it be like from FY26 or from FY27?
Zulfiquar Kamal — Zim Laboratories Ltd
So already we have mentioned earlier and again and again where we are looking for the upper teams EBITDA margins and definitely with the whatever has been said on the regulatory front is there because something is not in our hand. And when the regulatory things approvals are received, our top line will also increase. And as you as you have mentioned the capex and everything is in place. We are hiring more marketing team for growth. So perhaps this year there can be a good growth. But the exact earning guidance we’ll be able to give you from the second quarter.
Sir, if I understand correctly, how much does this NIP + OTF can become as a total percent of your business? Can it go to like 25, 30%.
Anwar S. Daud
Or 50% over a period of time? It would be. It can go up to 50% also. Yes, over a period of time.
Zulfiquar Kamal — Zim Laboratories Ltd
But exact guidance will not be able to give this with today. It will be able to only give after second quarter where we’ll be very much clear about from the this our MA received and marketing the marketing partners what we have already agreed with.
Shreya Chatterjee — Analyst
And so my second question is do you have any plans of deleveraging as of now and if so, what like what is the plan to go forward?
Zulfiquar Kamal — Zim Laboratories Ltd
No, as we have mentioned the capex has already been closed. Our borrowings have been already closed. So there is. And we have been able to finance all these things from internal accruals and borrowing. So going forward there is no plan of deleveraging or any adding at this moment.
Anwar S. Daud
Big moment for sure.
Shreya Chatterjee — Analyst
And so if I may know your current capsity utilization and what will it be like in the future?
Zulfiquar Kamal — Zim Laboratories Ltd
Pardon?
Shreya Chatterjee — Analyst
Current capacity utilization and what will it be like in the future?
Zulfiquar Kamal — Zim Laboratories Ltd
Capacity utilization. Yes. Yeah, yeah. Capacity utilization as of now is as you have mentioned, both the suites are now ready. It is as of now very low. Whatever we are ready for the turnover and whatever this will be there. There will be no further capital expenditure going forward.
operator
Okay, thank you. Thank you. The next question is from the line of budget Agrawal who is an individual investor. Please go ahead.
Unidentified Participant
Hello. Am I audible?
Zulfiquar Kamal — Zim Laboratories Ltd
Yes.
Unidentified Participant
Yeah. Hi. So I just wanted to understand like what kind of steps are you guys taking in terms of marketing? Like employee cost should stabilize around 65 to 68 crores for FY26.
Anwar S. Daud
That’s right. Hello. Yeah, the employee cost is also keeping in mind the next three years of the company has. And keeping that, I think it will more or less stabilize. We have the right number of personnel and executives, highly qualified members of the team take this company forward in the regulated markets. And we just spoke about in due course of time having a half and half mix of business in the regulated and emerging markets.
Unidentified Participant
Got it, Got it. And I. I just wanted to understand from Dr. Mendy, like, I mean since the research work that you guys started in like four years is almost gonna. Come to an end in let’s say FY27, what is the future pipeline and. What kind of R D are you guys looking at in the future?
Chandrashekhar Mainde
As I mentioned in our talk, we are already finishing up our first NIB products and we have already selected the other NIP products which are also on the same line. They are also differentiated NIP product and most likely these products are more complex and they are first to five. So already we are in that direction at this moment. It is very confidential to disclose anything. But these products will also based on our platform technology. So we will have a protect to protection from the world platform technology. It is under well patented as well as the product patent.
Unidentified Participant
Got it, got it. I just wanted to understand like this fiscal Bangladesh and UAE what is the. Percentage of revenue that they’ve contributed?
Anwar S. Daud
We don’t give out such details.
Zulfiquar Kamal — Zim Laboratories Ltd
Difficult to let out that detail between formulation and other. But going forward, once the business mix will be stabilized, we’ll be able to disclose. Okay, that’s.
Unidentified Participant
That’s it from my end.
Anwar S. Daud
Thank you. Thank you.
operator
The next question is from the line of Ashwin JD from Samatva Investments. Please go ahead.
Ashwin Reddy — Analyst
Yeah. Hi, good afternoon. Thank you for the opportunity. So my first question is on the say for the next for FY26 and for FY27, what would be the absolute spend on the R and D and on the capex for each of the years? At least an approximate plan that you. Have for the next two years R&D spend the capex
Zulfiquar Kamal — Zim Laboratories Ltd
As far as I mentioned Capex will all the major capex have already been completed. There will be only the CAPEX will be on the more on the upgradation and improving technology. No further projects will be taken forward. As far as the R D it will be on the similar absolute numbers which we’ll be spending to keep the R D momentum of NIP and NIP pipeline going forward with the same BE and the filing budgets we have already approved BE9 for BI equivalent study products going forward and filing will continue on the same absolute numbers.
So in short, it will be in the similar line.
Ashwin Reddy — Analyst
Okay, got it, got it, got it. And my second question is on the legacy business. So when you said that the currency issues with large client have not been resolved. So would the legacy business stabilize at the current level or should we see a recovery back to the previous level in terms of the legacy business?
Zulfiquar Kamal — Zim Laboratories Ltd
No, it will be seen back to the previous levels and there will be a nominee growth also on the same line on the legacy business.
Ashwin Reddy — Analyst
So saying that the business will come back to where it was in the past.
Zulfiquar Kamal — Zim Laboratories Ltd
Trends only.
Ashwin Reddy — Analyst
Okay, got it, got it. And the final question is on the on the the phase two of the NIP which is starting now where you want to do work now. So in the from the field the whole learning from the phase one. So can you talk about the key learnings in terms of the go to market or in terms of your approach in the understanding the end market, understanding the ease of sale, the partnership, the whole Bit what are the key changes that you would want to make in the phase two of this journey?
Anwar S. Daud
You know, the learnings are the kind of learning that apply to any new entrant. First of all, the strategy for filing where we need to find, where we don’t need to find. Okay. The kind of partner we need to approach and at what stage we need to approach them. Perhaps some of the approaches were too early and some of them were too late. So we have to be very strategic. The moment we select the product, we have to be strategic about the partners we took to get in touch without losing confidentiality. So that’s one of the learning.
The other learning is the filing strategy. And I, I feel every stage of this kind of business that a young company for this kind of business, we are a young company does will always be learning. One of the things, one of the good outcome of the learning and trying to enter this kind of a market is the understand having an understanding of the general regulatory tightening even the emerging markets which is standing us in very good stead because of the kind of quality system we have built for putting our products to the regulated markets. I think we are having a far easier time in the regulatory tightening that is happening domestically as well in the emerging markets.
Chandrashekhar Mainde
Here one of the outcome here one of the learning. What we have taken earlier we are giving our dossiers, particularly all dossiers and our partners are filing. Now we are also at a ZIM also we are filing and investing in so that at the end of all process them will have also its MA on its own name. Once we have a MA on its own name we can have all rights to multiply the ma. We can have a many partner. So now we are keeping almost all rights with us and most of our deals whatever now we are signing are non exclusive.
So this gives us the very wide chance to have approach to the many customers and maximize our efforts in all markets. Mean in Europe there are 26 countries and so many players. So this gives us quite a non exclusive deal, gives us quite a flexibility to approach to multiple partners. Once we have a MA in the. Place, understood, this is our strategy.
Anwar S. Daud
You know, this is the opportunity that finance itself to any company once its track record in filing, in making these kind of products, in having the BI equivalent and having partners who have a certain reputation. And so once you have that then you have the flexibility and you know, the opportunity to be able to dictate some terms. So that’s a learning. And we are, we have learned that well and we are Going to use it.
Ashwin Reddy — Analyst
Understood, Understood. Great, great. Thank you so much for this and wish you the best of luck.
operator
Thank you. Thank you. The next question is from the line of deep Gandhi from I thought pms. Please go ahead.
Unidentified Participant
Yeah, I said so. Sir, I have two questions. So first is bit on the long term perspective side. So you know last five, six years we’ve spent and we’ve spent lot of time money towards R D But you know from last 1, 2/4 from your commentary it seems like finally we are at the cusp of getting fruits of that R and D. Now the point is that it might start in Q3, Q4, not interested in that. But can you talk about this? I mean are we right in our understanding and what are the risks you see? I mean apart from the execution risk, you might see some delays but apart from that what are the risks you see students?
Anwar S. Daud
Well, the biggest risk and the most, I mean all of us in India are aware of this risk is the geopolitical instability that is there. Currency fluctuation, currency problems. It’s an uncertain world. We have tried to protect the interests of this company and its stakeholders by first of all spreading ourselves having a larger geographical footprint. That’s number one. Number two. Also staying back on our legacy business because those are the routes we are choosing the kind of business we should do in our legacy market but we are not letting go of them. So we are increasing our foothold without letting go of the geographies in which we have traditionally been present so that there is the company’s business. Also the kind of investment we have done during this four or five years would be very difficult to do in these kind of uncertain times for any company. So we are happy with what has been done in the last four or five years in terms of capex and building up a team which can take us forward confidently in the next three or four years.
So that’s been done. We have had a lot of learning in the filing strategies and the partnerships and the terms on which we should do these partnerships as well. So it’s all good. In fact there are some places where these kind of products have in row and emerging markets where these products have command very good margin and we are very well placed competitively because of the way in which we have worked in these additional markets. So. It’S a good strategy. It’s a mix of de risking having a much broader geographical footprint, looking to our size and taking advantage of the kind of markets that are being offered to the company at this time in terms of the you know, successful execution of our NIP strategy.
Unidentified Participant
Sure, sir, thanks for that detailed answer. And sir, second is again on the legacy business side. So I mean you are expecting that order to the order which got deferred. So that might happen this year. So what kind of growth are you expecting in the base business for FY26 if you exclude say the NIP and the OTF products?
Anwar S. Daud
Yeah, 5% to 10%. I mean that because see, you have to understand there’s uncertainty everywhere. So this is what we know at this moment. This is the first quarter. Probably at the end of the second quarter is when we would be able to give you the growth percentages and numbers with a lot more confidence about the year.
Unidentified Participant
Okay, thank you.
operator
Thank you. The next question is from the line of Rohan Patel from Total Capital. Please go ahead.
Rohan Patel — Analyst
Yes, thanks for the opportunity.
operator
Sorry to interrupt. Sir, I would request you to please use your handset.
Rohan Patel — Analyst
Yeah. Is it clear now?
operator
Okay. Much better, thank you.
Rohan Patel — Analyst
Yeah, yeah. Thank you. So sir, you have already given your, you know, a goal of taking our NIP and OTF to 50% of our sales. Considering that you are now more sanguine about the prospect of NIP and OTF and we are way closer to, you know, getting marketing authorization in regulated in Europe and we have partners that are ready to start selling. Can you just give us an insight in how do you see this NIP + OTF going from say 19% that we are in FY25 to say in FY26 and FY27? How will that transition be for us? We are very optimistic about that transition.
Zulfiquar Kamal — Zim Laboratories Ltd
The details are we have already signed agreements for the same. The our marketing partners and the filing partners have given us the proper projections for it. But as you are aware, this is the very. We’ll be doing it for the first time and there are a lot of regulatory hurdles like Dr. Mendy and Dr. Daud mentioned. So exact growth which will be for this year and the next year will be difficult. But as we mentioned, the growth, we have already given our guidance that going forward it will be more than 30 to 40 nip and the ODs will contribute around 30 to 40% of our total turnover.
Rohan Patel — Analyst
Okay. And sir, just to you know, understand it better, currently we are at 62 crore of base. And we want to take this like we are giving. You are accepting that you want to grow at 25, 30% CAGRADE for next two years. So that would be considering that NIP and OTF will be growing much faster than that. So do you think that most of that growth will be coming from two to three products for which we have MA. And that would be like focus on from 80% of our export contribution. Most of that growth will come from our regulated markets.
And two to three products concentrate
Zulfiquar Kamal — Zim Laboratories Ltd
it will not only from the regulated market but also from the RW market. Because the filing of these products are being done both in the regulatory and row market. Also from other emerging market where there is a advantage. Like if you get a MA in eu there are very fast track registration in Australia and other UK and Australia and other farmers in market. So definitely we will take advantage of that regulatory support and registration support. So all in all NIP and OTF products after getting MA there is lot of opportunity gets open for us.
And we are depending on the growth going forward from these two segment of the business. So they will contribute more than 20 to 30% going forward, 13, 40% going forward on the total sales. So there will be lot of 20% growth over the last year. Their share nip and ODs on the total sale will grow. Okay.
Rohan Patel — Analyst
And considering that lot of things are as for going our plans and we are also by Q3 starting with selling. Do you find any risk or constraints that could come and hinder our growth or you know, make it difficult for. Us to achieve our targets?
Zulfiquar Kamal — Zim Laboratories Ltd
Yeah. So as we have earlier also mentioned that there is a regulatory risk what we are looking at because that is not in our hands. And secondly, in most of the cases we are depending on the marketing partner to launch these products and bring it in their market. So our role mostly becomes being ready with the product, being ready with the quality product, manufacturing and delivering it as per schedule. But the marketing and marketing expertise, we mostly depend on the marketing partner. So that is the risk which we always have. If the marketing partner is not able to deliver, then there can be a little bit of.
Anwar S. Daud
We are trying to mitigate that by having multiple partners. Yeah. Multiple non exclusive business. Yeah. And to mitigate it, we are having multiple partners in for a non exclusive. And an additional MA on our own name. Yeah. In every month.
Rohan Patel — Analyst
Okay. Yeah. It answers my question. Thank you.
operator
Thank you ladies and gentlemen. That was the last question for today. I now hand the conference over to the management for closing comments.
Anwar S. Daud
In closing, I would like to express my sincere gratitude to the entire VIM team, our partners, stakeholders and especially our shareholders for your continued trust and support. Your confidence really drives us and keeps us focused on sustainable growth and value creation. Also safeguarding your interests by de risking the business to the best extent of our ability in these turbulent and uncertain times. So we will keep on working and we’ll see that your confidence in us remains justified in the next few years. And we are able to give you the kind of performance which you expect from us.
Thank you very much for the opportunity to present you with all the information that has been presented today.
operator
Thank you. On behalf of Go India Advisors, that concludes this conference. Thank you for joining us. And you may now disconnect your lines.