Anupam Rasayan India (NSE:ANURAS) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the Q2 and H1 FY 'twenty seven Earnings Call for Anupam Rasayan India Limited. This conference call may contain forward looking statements about the company, which are based on the beliefs, opinions and expectations of the company as of the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. From the management side, we have with us today, mister Anupam Rasayan, managing director, mister Gopal, executive officer, mister Amit Khurana, chief financial officer, miss deputy chief financial officer, and mister adviser.

0:49 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. Please note that this conference is being recorded. I now hand the conference over to mister Anand Desai from Anupam Rasayan. Thank you, and over to you, sir. Thank you. Good evening, everyone, and thank you for joining us for our q two h one FY twenty seven earnings call. We have concluded the first half of FY twenty seven with a strong consolidated performance and meaningful progress across our strategic priorities, including expansion into new end markets and strengthening our pharmaceuticals and performance material business.

1:41 During the quarter, we completed the acquisition of this GBS Pharma Limited, marking an important milestone in our journey towards building an integrated global pharmaceutical platform. This acquisition represents a significant step forward in our strategy of expanding beyond our traditional agronomicals business and strengthening our participation across the pharmaceutical value chain. This GBS brings complementary capabilities in finished dosage formulations, a portfolio of more than one fifty brands, established benefiting in... In furniture, and an international distribution network. More importantly, this DBS allows us to combine our existing strengths in pharmaceutical intermediates and custom synthesis with finished dosage capabilities. This creates opportunities for deeper customer engagement, forward integration, and a gradual expansion into the emerging markets.

2:33 Our acquisition led expansion, including Genentech Industries, Geofind Chemicals, and now GBS Pharma, is helping us build a more diversified business platform with complementary capabilities across chemistries, products, and markets and geographies. On the business development front, we continue to expand long term customer relationships and improve revenue. Our cumulative portfolio of LOIs and long term contracts now stands at approximately 17,496 crores, providing visibility over multiple years. During q two FY twenty seven, we also signed a six year long term supply agreement with our leading US global specialty metal manufacturer. This marks our entry into a new segment within the geological resources sector and represent an important step in diversifying our customer base and expanding our presence in specialized industrial applications.

3:31 The agreement reflects the confidence of global customers in our technological and manufacturing capabilities. On the technology and innovation front, the commercialization of ETFE using continuous flow chemistry remains an important milestone for the company. It demonstrates our ability to translate complex chemistry and advanced process technologies into commercial scale manufacturing. We continue to strengthen our capabilities across flow generation, flow chemistry, and other specialized chemistries to address increasingly sophisticated customer requirements. We also continue to see encouraging traction across our polymers, electronic chemicals, and other fluid related product businesses, supported by our technology capabilities and long standing customer relationships. Looking ahead, our priorities remain clear. We will continue to focus on strengthening our product portfolio, accelerating the commercialization of our development pipeline, integrating our recent acquisitions, optimizing the utilization of capital employed, and increasing the contribution from higher end value businesses.

4:35 We will do the combination of our established chemistry platform, differentiated technology capabilities, robust manufacturing footprint, strong customer relationships, and expanded pharmaceutical capabilities positions Anupam Rasayan well for its next phase of growth. We remain committed to discipline execution, operational excellence, and sustainable value creation for all of our stakeholders. With that, I will now hand over the call to Gopalbai to take you through our business performance and key strategic developments he gave. Yeah. As Anupam mentioned, the first half of FY twenty seven has been an important period for Anupam Rasayan with meaningful progress across our business segments, customer engagements, and strategic initiatives. Let me elaborate on some of the key developments during the period. I would first like to touch upon our recent acquisition and the opportunities they create for the group.

5:24 Completion of this previous form acquisition as on 09/28/2026 marks an important milestone in our journey towards building an integrated pharmaceutical platform. Anupam Rasayan now holds approximately 50.07 percentage of the equity capital of this... DBS Pharma. This DBS brings an established pharmaceutical formulation business, manufacturing capabilities, and the presence across several international market. We believe this acquisition will complement our existing pharmaceutical intermediate and custom synthesis capability at Anupam and allow us to participate across a wider part of pharmaceutical value chain as a group. Our immediate focus is on strengthening operational alignment and identifying opportunities across product development, manufacturing efficiencies, customer relationship, and expansion into regulated market to leverage the combined capabilities of both the organization.

6:16 Moving to Jahawk Fine Chemical, we believe we will continue to focus on integrating Jahawk Fine Chemicals into our global platform and further improving its EBITDA margin through cost optimization initiatives. JEHOP provides us with a manufacturing presence in The United States and strengthens our capability across advanced custom synthesis, life sciences, and performance. The combination of JEHOP's technology platform and customer relationship with Anupam Rasayan's manufacturing process chemistry capabilities creates opportunity to deepen our engagement with multinational customers. On the business development front, our engagement with global customer continues to remain encouraging. The long term agreement and strategic partnership secured by the company reflects the confidence customer places in our manufacturing capability, quality standards, and ability to develop complex models.

7:07 We have received a strong fiscal ESG rating of 62 and a strong Cresyl Co ESG rating of 63 compared with an adequate rating of 54 in the previous year. Looking ahead, our priorities remain focused on accelerating commercialization of our product line, increasing contribution from performed material and pharmaceutical, integrating our acquisition and extending our global customer relationships. With that, I now hand over the call to Anupam Rasayan for his comments. Thank you, Gopal Rai, and good evening, everyone. The first half of FY twenty seven has been an important period for Anupam Rasayan, marked by a significant strategic development with the completion of our acquisition of this Genius Pharma, alongside our continued focus on strengthening our existing businesses and expanding our presence across high value segments.

8:01 From a funding perspective, the Bliss GBS acquisition was structured through a combination of debt and a noncontrolling, nonvoting instrument. The transaction was funded through a 300 crore term loan and a 1,450 crore raise through a noncontrolling and a nonvoting instrument from a group of financial investors led by Bain Capital, including Trust Group and Investec. This financing structure enabled us to fund the acquisition while preserving balance sheet for future growth and expansion. Our focus remains on ensuring that the investments generate sustainable returns and contribute positively to the overall financial performance of the group. Another important priority is ensuring that our recent acquisitions are integrated effectively from a financial and operational reporting perspective.

8:51 We are working towards strengthening financial controls, improving reporting processes, and establishing consistent performance monitoring mechanisms across our businesses. As the overall contribution from pharma and performance material increases and becomes a larger share of the group's revenue mix, we expect revenue cycle... Cyclicality to reduce over the next four to eight quarters. On the operating front, we have witnessed a meaningful improvement in our profitability margins. Our consolidated EBITDA margin improved to 25% in q two FY twenty seven compared to 19% in the corresponding quarter last year, while H1 margins improved from 26% from 22%. This improvement was primarily driven by a higher contribution from Performance Materials segment and a favorable product mix.

9:40 On working capital, I would like to highlight an important aspect of our consolidated financials. Following completion of the Brisk GBS acquisition, its balance sheet has been consolidated with the group as of September 2026. However, Brisk GBS revenue and operating performance have been consolidated only from the acquisition date of 09/28/2026. Consequently, its contribution to the consolidated results for the quarter ended 09/30/2026 is limited to three days. Therefore, while the balance sheet reflects the acquired business, the revenue contribution is recognized only for the relevant post acquisition period. If we ex... Exclude this DBS balance sheet, we have seen a slight improvement in our overall working capital cycle, which has reduced from two seventy six days to two seventy one days.

10:31 We remain focused on further improving in improving inventory management, receivables collection and overall working capital efficiency as we integrate our businesses and expand our operations. Our objective is to improve capital efficiency and ensure that business growth translates into stronger cash flow generation. Compared with the previous full year's operating cash flow of INR $3.34 crores, the operating cash flow generated in H1 FY 'twenty seven was INR $3.28 crores, driven by stronger profitability and a greater focus on working capital optimization. Going forward, our approach will remain focused on balancing growth investments with financial discipline. We will continue to evaluate capital allocation opportunities carefully with an emphasis on strengthening our business capabilities, improving operating efficiencies, and creating long term shareholder value.

11:26 I will now hand over the call to our deputy CFO, to take you through the financial performance for the quarter and half years. Thank you, Ahmed Bhai, and good evening, everyone. I will briefly take you through the consolidated financial and segment wide sales performance for quarter two and h one FY twenty seven. Total income for the quarter stood at $8.21 crores compared to $7.39 crores in the corresponding quarter last year, registering a strong growth of 11% year on year. EBITDA for the quarter stood at 202 crores compared to $1.44 crores in quarter two f y twenty six, representing a growth of 41% year on year.

12:13 EBITDA margin for the quarter came in at close to 25% as against 19% in quarter two of FY twenty six. Profit after tax for the quarter was 65 crores compared to 57 crores in the corresponding quarter last year, registering a growth of 14% year on year. Profit after tax margin for the quarter stood at approximately 8%. The revenue breakup for quarter two of FY twenty seven was as follows. Life science related specialty chemicals contributed 42%. Performance materials contributed 28%. Other chlorinated products contributed 29%. Moving to h one FY twenty seven performance, the consolidated total income for h one stood at 1,489 crore compared to 1,230 crore in the corresponding period last year, registering a strong growth of 21% year on year.

13:19 EBITDA for h one stood at 377 crore compared to 273 crore in h one f y twenty six, representing a growth of 38% year on year. EBITDA margin for the half year increased to 25.5% as against twenty two point two percent in h one FY twenty six. Profit after tax came in at 116 crore compared to 106 crore in the corresponding period last year, registering a growth of 10% year on year. Profit after tax margin for the quarter stood at approximately 7.9%. The revenue breakup for h one f y twenty seven was as follows.

14:08 Life science related specialty chemical contributed 41%. Performance materials contributed 29%. Other chlorinated products contributed 28%. The decline in the stand alone revenue for quarter two of f y twenty seven compared to quarter two of f y twenty six is primarily attributable to onetime sale of approximately 180 crores in quarter two of FY twenty six. Excluding this onetime sale, the underlying performance should be viewed in context of the normalized business run rate. The completion of Bliss Genius Pharma acquisition during the quarter is an important development for the group.

14:56 The financial contribution of Bliss is reflected in the consolidated result for this quarter from the date of acquisition, which is 09/28/2026 in accordance with the applicable accounting standards. Thank you. And with this, we can now open our floor for question and answers. Thank you. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and then one on your touch tone telephone. If you wish to remove yourself from the question queue, call.. We have the first question from the line of Nitish Rege from Credit Capital. My question is mainly towards Bliss.

16:10 So, you know, Bliss being a organizations player mainly and us being on the intermediate side on the pharma side, and we highlighted previously that we are looking for... To acquire assets from the API side. So is there any development on that front? Do we have any targets identified, or are we still on the exploring field? Yeah. Understood. So we have been evaluating opportunities, and we continue to have conversations. Right now, we have no anything to really share share to the public right now. But as and when we have it, we'll definitely announce it for now. But, yes, we are actively looking for it. Yes. We are. Okay, sir. Thank you. And secondly, on the CDMO business, how do we see that scaling up? Because now we will leverage Anupam's larger sales and marketing team. Right? Could you guide something on growth on the CDMO field?

17:06 Yes. So there there has been a lot of active discussions happening with the... So so I can say this way that Blizz themselves were having active conversations with their own customers where they had an inquiry, and we were also doing so. With this transaction consummated, now this conversation has become more more, you know, with higher higher agility and higher force and urgency. And the the customers are seeing the value of of an integrated platform where Anupam can support Bliss' business... Bliss' offering and and vice versa. So to that extent, yes, the the momentum has picked up here. I I can say that for now. And and we see a very strong growth potential going forward.

17:54 Anything you can quantify? Right right now right now, I I... There is a very act... I I can say very active advanced discussions, but yet yet not at at a level where we we we would be able to to to share it with the public for now. Got it. So just last question on my side. Also, the steady state margin for Blitz, we've seen good margin expansion, 100 around 26.2% operating EBITDA. What would be the steady state EBITDA margin for this business? Yeah. So I think what what we can say is that the the active... So so, Bliss, yes, we believe that 22 to 24% EBITDA margin, which we have said is an average consolidated EBITDA margin for Anupam as well as a as a con... On a consolidated basis. I think that's the number that we should be... We'll be looking for.

18:53 And and that's where we feel we... We're comfortable with it as we go further. No doubt they've done a far better job, and I think we will we will we'll endeavor to do better, but I would I would guide at that number. So what would be the reason for them for the list management to much better than what we are guiding for 20% margin? So, see, there there have been there have been a portfolio that have been sales of our products which are which are of a higher margin also. And, also, there has been... They've been able to pass on the the the price price rises and all. But on a sustained basis, we would we would want to be cautious in terms of what we guide to the market, and that's where we are coming with the number that we are saying. Okay. So thank you so much. I'll follow-up in the feedback. Thank you. Thank you very much.

19:44 Thank you. We have the next question from the line of Tanya Chaudhry from Investec. Please go ahead. Yeah. Hi. Thank you for the opportunity. So firstly, a stand alone EBITDA margin is currently running at 34%. This is well above your earlier guidance of 24 to 26%. So how much of this improvement is structural versus your product mix? And would you revise your stand alone or console margin guidance following this this acquisition? So so, Tanya, because we have done we have done better on the margins, but it's also to do with the product portfolio and and the the products that we have sold in this quarter versus the the other quarters. I would con... I would I would urge to caution and continue to guide at the numbers that we have been guiding. If we do better, yes, that would be good, and that's our endeavor as we have always been.

20:39 But for now, I would really guide at the numbers that we have been guiding for for now at least. Sure. Sure. And, sir, on BLISS, you highlighted 62 molecules, including 48 plus in regulated market. So how many of these are filed, approved, or or commercially launched today? And what milestones are needed before these translate into meaningful revenues? So there is... There... So, see, there is... There has been... If you look at the... Recently, they have announced one more approval from the European regulator as well of the product. So they continue to build the portfolio, but I would I would refrain from making too many comments on behalf of the management at least because they also have a listed entity. They are also listed. And I would really refrain for now to make any more guidance on on their behalf, I would say, if you if you if you pardon me for that.

21:37 Sure. Sure. And, sir, when do we expect to start seeing synergies from the Bliss acquisition, and what was the capacity utilization for Bliss plants this quarter? So see, if you look at it, they have grown significantly. Their their utilizations will be in the forties because if you see, they have a very meaningful growth from the last year. So that has that has started, their their capital utilization continues to grow, and we believe that will continue, one. Two, in terms of synergies, as I was mentioning earlier also that, like, on the CDMO side, the the the conversations have started and getting active very actively. Also, if you look at it from a supply side, because we come from the KSM and from a chemical... A strong specialty chemical background, that will help them in their own sourcing as well. So so there are... Also from a from a end market point of view where we have been very active in US and Europe and other regulated markets, so we will be able to support them there as well. So synergies are... So right now, we are working with the management to to to focus on which are the ones that we want to start immediately and which are the ones that we will we will have a most of... More planned way, and that's where we are right now in the discussion. But the the... We can see that there are levers that we can see across supply, across, you know, CDMO, across end markets that we will be able to support.

23:03 But let's see. And and we believe that soon in in in three to four quarters, we should start seeing some some benefit out of that or at least some momentum getting generated from that. It could take little time for us also to synergize with them. Understood. Got it, sir. And lastly, over the past three quarters, Anupam has completed two significant acquisitions. So just wanted to get your view on your thinking behind this aggressive inorganic expansion. Do we expect more acquisitions going forward or more of organic growth? Okay. I I I... I'll take a step back, and I'll I'll... Indulge me for a couple of minutes here, but I'll tell you the the the the rationale and the logic behind this. And and then I'll answer the second question about what more we we we may think. But let's first... So if you see the the whole approach that we have been taking is that we wanted to diversify further from the only the agrochemical market into pharma and polymer and the specialty market, specialty chemical side, performance chemical side Yeah. Which we have been consistently doing for a period of time organically as well. And... But what we also believe is that the world is moving towards a full value chain and a supply chain rather than a a product or product or a or a or a chemistry offering.

24:24 And in that sense, we have built a a very strong value chain and a and a supply chain offering to our customers in the agrochem side. If you look at the acquisition of Tenfac, it was in the same zest, the same approach, same objective that, you know, we we we secure the supply sources for the fluorination chemistry, which is HFNKF, and that's what we've been building, the value chain. But if you look at from a polymer side, we have built a a good portfolio today. 2025% of our revenue comes from that end market. However, with the acquisition of Jayhawk, what we've been able to do is we have been able to offer a full value chain, right, from from an HFKF to straight up to a a a polymer a polymer completely across India and US manufacturing base. So that really gives a very strong offering to our customers, which also...

25:18 What it also does is it it gives me a a a three or four variables... Three or four levers here. One is the chemistry. There are complementary chemistries, and there are very strong chemistries that they have in terms of high temperature oxidation, grid not reaction. And Anupam offers a multiple other complementary chemistries, which really gives a larger okay of services and and chemistries and manufacturing capabilities to our end customers, which is very, very essential in in in in in the current environment that we live in. Second, as I said, manufacturing versus... Manufacturing in US and India, which is, you know, onshore, offshore and near shore offshore structure really becomes a very compelling offering to our customers in in US and and and Europe and and and and and more regulated markets.

26:07 Three, if you look at it from a a full chain point of view, again, as I was saying that right from a a key building block like HFKF, if you are able to offer a travel... The whole value chain across up to, like, the polymer or a monomer... Polymer in US, it really, really helps. Third, the validations that Jayhawk had or has, which is in terms of semiconductor industry, in terms of defense, and others, which really gives us a shortened time to market for us. And and we can really... Today, when we go to our customers, we are seeing very, very at... Very, very excited conversation with our customers where they are looking at, you know, saying that, can you do this for me?

26:55 And, like, I'll tell you one... A simple example, one of our Japanese customers was looking at doing, let's say, thousand tons with us. But the moment we offered that... The moment we had a Jayhawk announcement, they said, if you can give us materials to... Out of Jayhawk, probably we can we can triple it to the volumes. So that's the kind of our demand that we can see. Also, if we can offer it from US, then they are also happy to give us a one step forward, which is practically a polymer output. So so in that sense, you can see that there is a complete offering that you are able to offer. It's it's a platform play that is there. So as I said, agro, did it same as we have done it with polymer, and that that is the same approach that we are looking at it with place acquisition where we are able to offer a pharma platform. Because if you see, ANURASH gives us, again, chlorination because a lot of lot of pharma products today has flour...

27:47 Chlorine chlorine as a moiety in their formulation. So that's one. Two, Anupam today has around about 20, 25% of our revenue coming from KSMs of pharma industry, and Bliss is on the formulation side. Yes. There is a missing piece from a value chain on the API side, which again, we have said that we will be actively looking at plugging that play... Plugging that part of the value chain. But, again, you are really making a very compelling, very, very attractive alternate supply chain solution on a full platform basis to our customers, and that's something which is which is there. And if you look at from a... Across... So if you if you look at the whole strategy here, across chemistries, across geographies, like US, Europe, Japan, India, and Africa, across end markets, like pharma, polymer, agro, and and performance materials, your products going into EV and semiconductor industry, across, you know, right right from a very basic raw material like HFKF or a vitamin to AI or an API or a or a or a formulation or a polymer is something which is very unique that that that we are we are we are building.

29:06 Let's see over the next two to three years, you will see a very strong reflection of what we are what we are right now sowing the seeds for. But let's see. That's that's how... And that's the the approach for this m and a, and we got few very attractive opportunities, which we thought that it is worthwhile pursuing, and we did so. On the... Are we looking at anything more right now? There's nothing much to say. Yes. We continue to evaluate We continue to evaluate multiple opportunities, but right now, nothing more to say on this. Sure. Hope, Anupam Rasayan. Thank you so It was a very it was a very verbose and a very long answer to your question, but I hope that gives you a context of how we are thinking here. No. Yes. Definitely. Very good to you, sir. Thank you.

29:52 Thank you. Thank you. We have the next question from the line of from GM Financial. Please go ahead. Hi, sir. Thanks for taking my question. The first one was how to look at the overall revenue growth in the second half of fiscal 'twenty seven, probably on console as well as standard. So console, we have seen roughly flat to I o I numbers. So how should we think about the second half? So first, console, would also reflect like what HP mentioned in our opening speech as well that that you have to to see that there was a base effect of 180 crores more of additional revenue coming from the last year. Last... But also you need to see for that. But if you look at it other than that, I think what we can expect over the second half, which typically has been a stronger second half...

30:49 Half typically, We we we should be looking at the console revenue for about 24 to 2,500 crores in the ballpark of that number on a consolidated basis because all the... Anupam, Jayhawk, Tran... And Bliss, all four, we will be able to consolidate. Today, there has been a couple of companies which have been consolidating, whereas Bliss, we have not been able to consolidate except for the three days. JHOP, we have been able to do it only for four months. So over a period of time now, we'll be able to see it better, and that would translate to annualized run rate of around about 4,800 to So... And that's our target. Please pardon me.

31:35 There is some some bit of a guidance here, but that's that's what we think we should be able to look at here. Okay. So this 2,500 revenue you are seeing is for h two? H two. Yes. Okay. That's great. And the second one was, if I look at our first half balance sheet, there's close to $7.50 crores out of cash and cash equivalents. And now since I think on the stand alone side, we had not much CapEx to be incurred. Where are we planning to utilize this cash on a consolidated? So see, that if you look at these cashes across all different entities, including Jayhawk, Bliss, Anupam Anupam subsidiary in US and in in as well. And by...

32:28 What we what we think is we need to adequately keep cash cushions for each of our entities. We will continue to do that, support them... Support this cash will be used to support their working capital as well as small amount of, you know, any any any minor CapEx if there is any. But, yeah, otherwise, this should be largely there for their working capital growth. Okay. So we are planning to maintain similar kind of cash levels across entities on a console level? Yeah. So there will be little little bit of a plus or minus. Yes. We can we can see that, but, yeah, we would need to keep reasonable amount of cash in each of the entities so that if you look at even our m and a... Financing for the m and a and the acquisition also, if you look at it, we have we have ensured that we don't load any debt onto the balance sheet of our targets so that they have enough headroom to grow, and there is no no pressure of servicing the the the debt there. So that's what we have been doing, and we will do that... We...

33:27 Do so. And that also gives you enough cushion if and when we need to do anything in terms of... There is no pressure on any of the entities. Understood. Other one was... So we had signed this six year long term contract with U. S.-based, the specialty manufacture... Metal manufacturer. Probably, we have now been under agri, pharma and polymer, but this material contract looks a new segment which you are entering. What is the moat here, why the customer has given us this contract, any volume value that you can share on this? Yeah. So first, if I were to say, a, we are sector agnostic because we are a chemistry guys.

34:15 This product was, you know, being offered to few of our peers as well. And, our our our technical team could do a good job of building that product well and in the time and speed that they they needed. Because if you see, this is this is very, very... It was an urgent requirement of our customers. We did it in four months. We could do a commercialization of this product, and we are starting to supply from November itself. So this is something which I I I I I feel very proud of from a... From our our technical capability point of view that if a product has been been seen in the market and and and and a product product has been seen in the market by our peers and then we can do it in four months' time, I think it's it's it's it's a very good... And, also, the CapEx that we had done and and kept it ready really helped us ramp up very quickly.

35:09 So so so our multipurpose plan that we have we have set up as the approach that we have always taken of multipurpose plan has really helped us. Our strategy of keeping a a level of capacity free of it really, you know, helps us in terms of, you know, attracting this customer well. And customer has been very, very excited with us that they've started taking, you know, volume right right from November. And in in a matter of just four months time from start to now, they... We have been able to convert them into a six year long term contract, which is something which I think is a very high reflective of our capabilities that, you know, you can you can get the product approved in three months time from inquiry and get a contract of six years. I think feel very, very proud of our commercial sales and technical team here.

36:12 And we believe it will be a very meaningful number as we go. Is there any number that we can put to this contract? So this year, at least we can say that the balance will be at least a 100 to... 150 or plus or minus few tens of crores should be what we should expect in this year, and it should it should increase further significantly to... Even if I take a run rate, you can double the run rate from there over the next year, year, two year and a half per month. Okay. Sir, last question was on order book. So now we are saying we are having close to INR 175,000,000,000 INR kind of an order book.

37:02 Probably if I take midpoint, it will be similar to five or six year kind of order book put together for all these contracts. Or... So I think broadly, there should be a yearly run rate of close to 6,000 crores that we should reset. And secondly, this is consult plus standalone put together. The overall order book, how should we think about the ramp up one is two, three years, four years to This is a stand alone one. And 17,000, I would divide it by, let's say, seven years on an average, six to seven years as you rightly said. So if I do a six six to seven years, the number will be in that... Around about 22 to twin... 2,500 odd crores on an average, of which last year we did around about $3.50 odd crores... $3.50 odd crores, and we see that this year it should be practically going into 1.8 to two times of that number this year.

37:53 And we see that over the next two to three years, we should be able to ramp up to those numbers. Okay. And just this last one on... So we had been typically maintaining higher inventory in 'twenty four, 'twenty five. Has that helped us in getting higher EBITDA probably in FY 'twenty six? So, Amit, the whole idea of of of our approach, if you look at our business model itself, our business model is that our customers should not have any surprises either in terms of volume that we are not able to deliver, the quality. Yeah. Even also in terms of pricing or any any eventualities.

38:39 Like, if you see during COVID period, during the the Ukraine period, or you you... During your Iran Iraq period as well, we have been able to consistently deliver to our customers the product that we had promised, the con which we had promised, and the the pricing at which we had agreed. So we have been able to do that, and this inventory to us is is those shock absorbers. Uh-huh. Uh-huh. So so so that that shock absorbers for our customers that we are not... They are not, you know, exposed to the vagaries of market so so so sharply every time. And if you see that's that's where you see my my my EBITDA margins has been consistent over over last four to five cycles of whatever it is. I have enterprises have gone up, raw material prices have gone up, when the raw material prices have gone up. Because our business is not to to to profit from the the the the the price volatility of the raw materials or otherwise. Our business is in terms of offering a quality services and making our margins from from our technical capabilities.

39:43 Today, if you look at sulfuric acid has gone from $7.07 rupees to 45 rupees a kg, and yet we have been able to deliver products to our customers where they they really feel very, very comfortable to do business with us. Today, we we we... Today also use sulfuric acid of two fifty metric tons per day, and that's a huge volume. And yet, we have been able to deliver pricing and pricing what we have been doing. So I think... And and and that's what if you look at Propylene glycol or if you look at any other product, all products, you will see that approach. And, see, we appreciate that there has to be... There there is a right balance between the the the business stability and sustainability and and stability versus the the the financial parameters and the... And and the return ratios.

40:31 And we are pre... We we have been very, very strongly focusing on that. Like, what Amit Bhai also said, the kind of focus on the cash generation from the operations has also been there, but it could be also from the from the business stability point of view. So both have to be done prudently and hope... At least in the last two cycles, we have been able to manage it better. Yeah. I think that is visible in your standard on EBITDA margins. So that shows that you have been able to pass through. But great, sir. Thank so much for that, and best of luck for the coming quarters. Thank you, Amit. It's always been a pleasure to talk to you. Thank you. We have the next question from the line of Hardik from ICICI Securities. Please go ahead.

41:18 Thanks for the opportunity, sir. Can you help us explain the funding structure of the lease acquisition and how the prepayment schedule is and what the interest as you said it would be your term loan, right? So what interest is it would be carrying? And secondly, how is the progress on Elementium LOI? Okay. So first, let's talk about the structure. The structure of acquisition of Bliss has been similar approach that we have taken what we did for Jayhawk as well, that we have a quasi equity financing to a large extent. Around 1,450 odd crores is basically quasi equity financing where we have a right to buy them out at at any given point in time over a over a reasonably long period of time time frame. And two, around 300 crores is what we have borrowed on a on a on a wholly owned subsidiary as debt. The the debt pricing is in the single digit, which is similar to what we take debt on our balance sheet.

42:23 However, that also is a consolidating debt, so we do not have pressure in the initial year of servicing them for for now. And so so so that's the structure that we have. And the second one, on the elementium side, the... With the contract discussions that are right now on the ongoing, and we we believe that we should be able to come out... Conclude this soon. And on the supply side, we started supplying some volumes to our customers on on on the schedule on a monthly basis. That's really helpful. Thank you. Thank you. Thank you. We have the next question from the line of Nishant Patra from Ducalya Ventures. Please go ahead.

43:13 Yes. Hi, sir. Thanks for taking the time. Just wanted to quickly check what are the numbers that you're expecting in the couple of coming quarters. So we had... In in my previous statement, had suggested that in the first half... Second half, we are looking at a number of $22,402 thousand 500 or crores on a consolidated basis in terms of revenue. And that would translate to around about 2,825 thousand crore crore per annum... Annualized revenue in terms of its run rate. That's the number that we are looking at. We are we are we are trying to look at our work on, and then we see the organic growth from there on to be around about 20, 25 percentage points on a on a on a long... On a on a on a near term three to five year time period. Got it. Thanks. Nothing good.

44:01 Thank you. Thank you. Thank you. We have the next question from the line of Anupam Rasayan from Alpha Capital. Please go ahead. Hello? Anupam, you may proceed with the question. Yeah. Hello, sir. Thank you for taking my question. Sir, I wanted to ask, is there any seasonality in Bliss business as in one edge, it can be similar to two edge or, like, is there one edge is much better? What... Best I know is there is not much of a seasonality, but I think I will leave it for the management of Bliss to make that statement. Apologies. It's a listed entity. I would refrain from making much statements on their behalf. I hope you appreciate, and apologies for this.

44:48 Actually, sir, Blip doesn't do con calls, so that is why I think maybe we share... We can arrange that. That would be also helpful. I I can only promise you one thing that we will urge the management to start doing so. Hopefully, soon, they should they should do it. Sure, sir. Thank you. And in terms of Blipciser, is is... Have you made any changes in terms of business, or how are we thinking on that front, sir? So if you if you see that the approach that we have taken with Tanfact is the approach that we are taking with this as well, that the team has been the same. The... But, however, the the... We've got a new CEO, Rahul Rahul Kumar. He's a industry veteran with, you know, very strong experience from BRL and Bharat Bharat Sirodh.

45:39 And he has been delivering... Has delivered a fantastic performance in those two companies. We are very, very confident and and that he would be able to do the same with Bliss as well. And if the first two quarters results are any any indication, I think our our belief and our confidence is is is proven right and only strengthened further. Sure. Thank you. You. We have the next question from the line of, an individual investor. Please go ahead. Hello? Am I audible? You're a bit closer. Please use the handset mode. Well, now?

46:28 Yes. You're audible. Please go ahead. Yes. So as mentioned in your opening remarks, could you please elaborate on what specific initiatives we are undertaking at JHOP to improve EBITDA margins? So in Jayhawk, if you see there are broadly... Three broad parameter... Broad interventions that we see that immediately we can act... We are acting on. One, if you look at from a process optimization point of view, we will we we have a very strong... We have a good strength in terms of process optimization, especially when it when it is to using of the the solvents, using of the the acids, and using of the other raw materials. So that's something which we are working with them to optimize because there is a very strong cross learning that we can do with each other, and that's something which you will see On the area? Getting one.

47:24 Two, if you look at it from a supply side also, their their sourcing from India has been limited, but they have been look... Trying to to source from India. And today, with Anupam being its, you know, a 100% shareholder, we would be able to help them strongly here because of the size and scale at which we operate in India. So that's something which will help them in terms of improving their sourcing sourcing and the costing. And third, if you look at it from a affluent people inside the... There is there is a lot of room that we have in terms of opening up... You know, improving their effluent treatment cost, which also should improve their margins. So that's the the key three immediate ones, and that's more we are working on, which as we as we build on it, we will share with you as we go.

48:17 Okay. Thank you. Thank you. Ladies and gentlemen, that was the last question. I now hand the conference back to the management for the closing comments. Over to you, sir. Thank you. On behalf of the management of Anupam Rasayan India, we thank you all for joining us on our first earning call today. You may reach out to our investor relations partner, strategic growth advisers, for any further queries that you may have, and they will connect with you offline.

49:07 We wish you all a very happy Diwali and a happy New Year. We can now close the call. Thank you all. Thank you, members of the management. On behalf of Anupam Rasayan India Limited, we conclude this conference. Thank you, everyone, for joining with us today, and you may now disconnect your lines.