Advanced Enzyme Technologies Limited (ADVENZYMES) Earnings Call Transcript & Summary

Good afternoon, and welcome to this 34th Annual General Meeting of Advanced Enzyme Technologies Limited being held through virtual mode. [Operator Instructions] The proceedings of this meeting are being recorded. The requisite quorum is present. I now hand over the proceedings of the meeting to the Chairman, Mr. Vasant Rathi to address the members. Thank you.

Sanjay. Ladies and gentlemen, all the shareholders, Namaskar. It is my privilege to welcome you all for the 34th Annual General Meeting of your company. I sincerely hope that all of you and your families are in good health. As the required quorum is present, I hereby declare the meeting in order. This AGM is being held through video conference. Other video, audio, visual means in compliance with the circular issued by the Ministry of Corporate Affairs and the Securities and Exchange Board of India and the applicable provisions of the Company Acts 2013 and the SEBI Listing Obligations and Disclosure Requirement Regulations. In accordance with the said circular, the physical members at the AGM venue is exempted and the members attending the AGM through the VC facility is counted for the purpose of quorum. I welcome my colleagues on the Board of your company. Let me briefly introduce them to you. Mr. Kedar Desai. Kedar ji is an Independent Director and Chairman of the Audit Committee, CSR and Stakeholder Relations Committee. Kedar ji?

Yes.

Thank you, Kedar ji. This is Mr. Pramod Kasat, is an Independent Director of the Board and Chairman of the Nomination and Remuneration Committee.

Good afternoon, everyone.

Mr. Mukund Kabra, who is on my right is a Whole Time Director.

Good afternoon, everyone.

Mr. Vinodkumar Jajoo is an Independent Director on the Board. Vinodkumar ji?

Good afternoon, everyone.

And Mr. Nitin Deshmukh is also an Independent Director, Nitin?

Good afternoon, everybody.

Thank you so much. With us, we also Beni Prasad Rauka. He is a Chief Financial Officer.

Good afternoon. Namaskar [Foreign Language].

And Mr. Sanjay Basantani, Company Secretary. I also welcome Mr. Amrish Vaidya, Representative and Partner of our Statutory Auditors, M/s MSKA & Associates and the Secretarial Auditor, Mr. Shiv Hari Jalan, Proprietor of the Shiv Hari Jalan & Company Secretaries. Our first integrated annual report for the fiscal year 2022-'23 including Board's report, audited financial statement for the year ended March 31, 2023, notice conveying this AGM has been sent to electronic mode to the members of the advance -- members in advance at the registered e-mail IDs and have also been made available on the website of the company and submitted to the stock exchange. With the permission of the members present, the said reports, AGM notice, including the resolution and exemplary statement thereto are taken as well. The Statutory auditor's report and Secretarial audit report for the year ended March 31, 2023, does not have any qualifications, observations or adverse remarks, which would have any material adverse effect on the functioning of the company. Hence, these audit reports are not required to be read. The register of the Directors and key managerial personnel and their shareholding, the Registrar of the contracts or arrangements in which directors are interested and other relevant documents as mentioned in the AGM notices are available for the inspection as mentioned in a notes to the AGM notice, including the certificates from the Secretarial auditors in respect of the Employee Stock Option schemes of the company, confirming the implementation of the scheme in accordance with the applicable SEBI regulations and the resolution passed by the shareholders in this regard. Now I would like you to share some notable breakthroughs achieved in 2023, including the development of next-generation engineered proteins for biocatalysis, humand and animal nutrition and food. Promising commercial results were obtained in enzyme development for API intermediates. We were also granted several patents for the enzyme probiotic complexes. During the '22-'23, the company also made an investment of INR 60 million on acquiring 50% state in Saiganesh Enzytech Solutions. The company primarily into extracting latex from papaya, purifying and providing finished papain enzymes in liquid form like agricultural extraction of papain enzymes. Papain is one of the most important digestive enzyme used in the formulated solution for human health and nutrition as well as it is also widely used in food processing industry. We also doing something interesting this year. We launched B2C product under the brand name of Wellfa by offering products such as immune support, skin care, gut health, metabolism boosters, detox solutions, weight management, like Truslim, stress relief and regulatory health products. Wellfa has a positive impact on consumer health and lifestyle. This is just introduced 4, 5 months ago. And I strongly urge our members to go and take a look at it, it is available on the Amazon. Despite the challenges faced during the year, financial results of your company showed an improved top line growth driven by the human nutrition and the bioprocessing segment. However, as you all know, there is elevated cost in operating costs due to the impact and -- that also impacted some of our profit margins, highlighting the needs for continued focus on cost management in this uncertain times. Our top priority will be to develop enzymes to promote healthcare in human and animal nutrition and bioprocessing area. We aim to expand our enzyme libraries for these areas and create probiotic, postbiotic and prebiotic products for multiple use. Your company's commitment to innovation, sustainability and a wide product portfolio, along with our investment in R&D ensures that we continue to create value for our stakeholders, resulting in a mutually beneficial outcome. During the year, the consolidated operating revenue of your company grew by almost about 2% to INR 5,406 million from INR 5,294 million. Our EBITDA on consolidated basis stood at about INR 1,564 million degrew by 22% to INR 2,014 million. PAT before minority interest declined at 16% to INR 1,039 million from INR 1,238 million. The company's revenue from operations on a standalone basis increased to INR 3,115 million in FY '23 from INR 2,728 million in FY '22 at an increase of 14%. Profit after tax and standalone basis stood at INR 555 million during FY '23 as compared to INR 545 million during FY '22, an increase of 2%. Human nutrition has been largest revenue contributor with contribution of 66% of the revenue, and rest of them is mostly 10% to 15%. Your company is almost at 0 debt with the debt equity ratio standing at about 0.01x. Now even though it is not a stellar performance last year due to various different reasons as I explained before, let me give you some of the brief financials for quarter 1 of FY '24 which is just the quarter ended by June 30. As your Board in its meeting held today approved the financial results for the first quarter financial year 2023-'24, let me now share the highlights of the financial performance at consolidated level. The company's revenue from the operation increase INR 1,473 million for the quarter ended June 30, 2023, that is the first quarter as compared to INR 1,387 million for the previous quarter and INR 1,211 million from the corresponding quarter ended June 30, 2022. That means last year's first quarter versus this year's first quarter, the revenue has been increased by 22%. EBITDA stood at about INR 440 million in quarter 1 of FY '24 compared to INR 131 million in the quarter -- last year's quarter in FY '23, which is about 42%. The EBITDA has grown this year, revenue grown by 22% and EBITDA grown by 42% compared to the first quarter last year. This year compared to the fourth quarter, it is almost washed. Profit after tax stood at about INR 294 million which is for FY '24 compared to INR 118 million last year at the same quarter, which is about 67% growth. Yes. INR 321 million, that is 61 -- increase of INR 118 million, which is 67% growth. Now let me brief you on the e-voting period and related processes. Members can also report notes to AGM notices for the same. As per the Company Act and SEBI Listing Regulation read with a circular notified, your company has provided remote e-voting facility for all the resolutions mentioned in the AGM notice. The e-voting period commenced on August 1 -- August 8, 2023 at 9 a.m. IST and ended on August 11, 2023, at 5 p.m. IST. The e-voting facility is also available for the members present at the AGM and who has not cast the vote earlier during the remote e-voting period. Members voting shares of the company as of the cutoff date of August 5, 2023, are provided an opportunity to cast their vote electronically. We have engaged the services of NSDL for facilitating voting through electronic means. Your company has taken requisite steps to enable members as on the cutoff date to participate and vote on the business items mentioned in AGM notice. As per the applicable provision, every resolution, which has been put to vote through remote e-voting need not be proposed by a member and seconded by another member. There are 3 ordinary business and 5 special business items that were pre-circulated through AGM notice to the registered email ID of the members and taken as a read at this meeting. All resolutions read with explanatory statements are already placed before members through remote e-voting. Ordinary business; item #1, to receive, consider and adopt the audited financial statements standalone of the company for the financial year ended March 31, 2023, together with the auditor's report thereon and the report of the Board of Directors of the company and the auditor's financial statement of the company for the financial year ended March 31, 2023, together with the auditor's report thereon. Item # 2, pursuant to the dividend distribution policy of the company, the Board has recommended a final dividend of 50%, that is INR 1 per equity share of [ INR 3 ] for the approval of the members of the company. You already well known, you know that the company has already -- your Board of Directors has approved very special dividend and distributed $4 per share by 200% -- INR 4 per share [indiscernible]. Item #3, to appoint a Director in place of the Director, Dr. Sunny Sharma, retiring rotation -- by rotation for being eligible has offered for reappointment. The special business item recommended by the Board and details are provided in the relevant explanatory statement circulated earlier as a part of the AGM notice. Number 1. Special business item number 4 pertaining to Related party transaction of your company with subsidiary JC Biotech Private Limited for a period of 1 year, effective from October 1, '23 to -- the approval is sought for the members for sale and purchase transactions, not to exceed INR 750 million in the ordinary course of business. Number 2, resolution #5, which is special resolution, is for the appointment of Mrs. Vandana Tilak, as an Independent Director for a term of 5 consecutive years with effect from July 1, 2023. Number 3, special resolution #6, permits to reappoint of Mr. Vinodkumar Jajoo for a second term of 5 years effective from February 9, 2024. Special resolution #7 is for the reappointment of Ms. Rajeshree Patel for the second term of years effective from June 12, 2023. Brief profile and other details of the directors being appointed and reappointed are provided in the AGM notice. In resolution number 8, approval of the members is sought for the payment of commission to the nonexecutive directors of an amount not exceeding 1% per annum on the net profits of the company calculated as per the provision of Section 198 of the Company Act on the financial year basis. The said annual compensation is proposed to be paid in proportion to the number of meetings of the Board and the Committee that may be attended by the respect of nonexecutive directors during the relevant financial year or in such other manner as may be decided by the Board of your company. The approval is sought for a period of 5 financial years from April 1, '24 to March 31, 2029. Now we invite the pre-registered speaker/members one by one, and the speaker/members will then be required to unmute audio/video in the interest of time, the registered speaker/members are requested to restrict the speech for maximum of 3 minutes. I will attempt to reply queries after taking notes of all your queries and questions. The moderator will now invite the pre-registered speaker -- speaker/member one by one. Sanjay?

Thank you, sir. So we have a total 17 pre-registered speakers for this meeting. Out of 17, 4 speaker members are not present right now. . The first speaker in the list we have is Mr. Anil Mehta, so we are unmuting him. Requesting Mr. Anil Mehta to kindly unmute your audio and enable your video and then commence with the speech.

The person with the said name is not connected in the meeting.

Okay, not an issue. I will move on to the next speaker. The next person on the list is Mr. Anil Parekh. Requesting Anil Parekh to kindly unmute your audio as well as to enable your video and then commence with the speech.

Chairman sir, Rathi ji, other Board members and my fellow shareholders. Sir, I'm Anil Parekh from Mumbai. First of all, I would like to thank our CS team for extending good work as far as investor relation is concerned. Also, I would like to extend my gratitude to our CFO, Mr. Beni Prasad Rauka, who is always ready to help us whenever we have any kind of questions. Chairman sir, since last many years, we are doing very good financials, and I'm truly admirer of your leadership as far as our company is concerned. Our journey from 1989 onwards to 2022 was exceptionally well. And we all are happy that we are doing exceptionally well as far as our financials are concerned. Sir -- and I have also gone through the balance sheet wherein our corporate governance is highest level of corporate governance we have and very eminent board is doing excellent work and giving you support as financials are concerned. Chairman sir, we have quite a few subsidiaries. Are these all subsidiaries doing well or not? And what are your plans as far as capital expenditures are concerned? Chairman sir, secondly, how many, what you call, licenses we have got abroad, I would like to know. And our Advanced Enzymes, Europe B.V. and evoxx technologies and also Malaysian entity, how it is doing? If you can give me in nutshell, that would be good. Chairman sir, everything is well explained in the balance sheet and I don't want to go in much detail. However, Chairman sir, I would like to thank for bringing down our net debt to 0.01 exceptionally well, sir. And this -- you are doing consistently since last 5, 6 years. Sir, also, our results are very good at this juncture, do you have any plan of declaring bonus? I would like to know, sir. Otherwise, I have no questions to ask you. Only I would extend my wholehearted support to all the Board members and hoping that we will do exceptionally well in the coming future also. Thank you, sir, for patient hearing. I support all the resolutions.

Thank you, Anil ji. Next.

Thank you, sir. So the next speaker in the list we have is Anuj Katkar. Requesting Mr. Anuj ji to kindly unmute your audio as well as enable your video and then commence with the speech.

The person with the said name is not connected in the meeting.

Okay. So we will move on to the next speaker, Lata Negandhi. Requesting Mrs. Lata mam to kindly unmute your audio as well as enable your video and then commence. I think she is not right now available in the meeting.

The person with the said name is not connected in the meeting.

So the next speaker is Bharat Negandhi. Requesting Bharat sir, kindly unmute your audio as well as enable the video and then commence with the speech.

Respected Chairman, Board of directors and fellow Shareholders. Good evening to all of you. My name is Bharat Negandhi from Mumbai. Sir, firstly, I have received the annual report in time. The report is very informative, beautiful and transparent. I congratulate the Company Secretary, Mr. Sanjay Basantani and team who sent the physical annual report to my residence address. I would like to few queries. Sir, what is the CapEx program? Second, sir, what is the dividend payout ratio? Third, when the company declared last bonus, issue and how much? Number four, how many subsidiary companies profit making? Fifth, total number of employees in the office and the factory? Sixth, sir, what is the export turnover and which country do we export? Seven, page number 194 other expenses consumption of stores, traveling expenses, selling and distribution expenses, rate and tax expenses, legal and professional expenses and technical service expenses. All are gone up. Please give me the details. I fully support to pass all the resolutions and bright and healthy future of the company. Thank you.

Thank you, Bharat.

So the next speaker on the list we have is Bimal Agrawal. Request to you sir to kindly unmute your audio as well as to enable the video and then commence with the speech.

First of all, I thank the company's executive team, management staff and the shareholders. As Chairman has given beautiful picture. And my question was asked by the other shareholders. I don't want to repeat. That's all for me. Thank you very much. Thank you, company secretary for sending the physical copy of the annual report and I have already supported the resolution. Thank you very much.

Thank you, Bimal ji.

So the next speaker in the list we have is Dnyaneshwar Bhagwat. Requesting Dnyaneshwar sir to kindly unmute your audio as well as to enable the video and then commence with the speech.

First of all, I'm thankful to our company's Secretary -- Respected Chairman, Board of Directors, my fellow shareholders. Myself, Dnyaneshwar from Mumbai. I am thankful to our Company Secretary, Mr. Sanjay Basantani, for sending me the soft copy as well as hard copy of the AGM copy at my residence well in advance which is full of knowledge, easy to understand. So I thank to him and his team for doing excellent work. Secondly, I support all the resolutions. Third, about the financial aspect, the Chairman, while opening remarks, has given all the details, even he has given the details of first quarter results also. So after getting all the information, I don't think so I have to ask more questions about your financial aspect. So no more question about the financial aspects. I only have 2 questions. First question is that, sir, who is our competitor? Secondly, please let me know what share we are having in domestic as well as international market? Second question, sir, in your regards, for coming financial years, how much growth and profit you are expecting for 2024? Rest -- I have no more questions. Thanking you for my patience hearing, sir, I wish good luck and best wishes for coming festival and also the Independence Day for our company and the Board members. Thank you very much, sir.

Thank you, Dnyaneshwar ji.

So the next speaker in the list, we have is Lekha Shah. Requesting Ms. Lekha Shah mam to kindly unmute your audio as well as to enable the video and then commence with the speech.

Respected Chairman, sir, Board of Directors and my fellow members. Myself, Lekha Shah from Mumbai. First of all, I'm very much thankful to our Company Secretary, Sanjay ji and his team [indiscernible] for sending the AGM notice well in time which is full of knowledge, facts and figures in place. I would like to appreciate the Company Secretary for his effort in making things so much easier for us to understand through our annual report. Still, I would like to ask few questions. My first question is, what is the future of our company? How many are we planning to increase to revenue? What is the total number of employees and how many women employees working in our company? Thank you Chairman, sir for explaining us well about the company. Sir, I pray to God that he always shower his blessings upon you. I strongly and wholeheartedly support all the resolutions for today's meeting and my best wishes always for our company and its prosperity. Thank you so much, sir.

Thank you, Lekha ji.

So the next speaker in the list we have is [ Prabhjot ] Singh Sahni. Request Prabhjot sir to kindly unmute your audio as well as video and then commence with the speech.

The person with the said name is not connected in the meeting.

So next speaker we have is Rajendra Sheth. Requesting Mr. Rajendra Sheth to kindly unmute your audio...

Chairman sir, Management team, shareholder [Foreign Language] Thank you, sir. Thank you.

Thank you, Rajendra ji, and thank you for joining us through video.

So the next speaker in the list we have is Satish Shah. Requesting Mr. Satish Shah to kindly unmute your audio as well as enable the video and commence with the speech.

[Foreign Language].

Thank you, Satish bhai.

So the next speaker in the list, we have is Smita Shah. Requesting Smita ma'am to kindly unmute your audio as well as to enable your video.

[Foreign Language].

[Foreign Language].

Thank you very much, Bharat bhai.

So the next speaker in the list we have is Vinod Agarwal. Requesting Mr. Vinod Agarwal ji to kindly unmute your audio as well as to enable your video and then commence with the speech.

Respected Chairman, Mr. Rathi ji, our Whole Time Director, Mr. Mukund Kabra, our CFO, Beni Prasad Rauka; and our Company Secretary, Sanjay, Basantani. Sir, good afternoon, and congrats to everyone. I voted for all the resolutions in favor, which have been sought to be passed today. Sir, I am pleased that Mr. Beni Prasad Rauka has been there with us since a decade now. And wherever he will be there, the financials of the company will be handled very good and he's handling the finances very well. So my 2 or 3 queries. Last year, we had earned a forex of INR 736 lakhs and we spend only INR 435 lakhs. So we are net INR 3.1 crores plus in the foreign exchange. So very good, sir. You're doing very good for the country. And our borrowing when I see this long term and the short-term borrowing consolidated only about INR 132 crores, while our liquidity when I see in a mutual fund is about INR 3,595 crores, and in the -- million, these are millions, not in crores, sir. And the cash and the bank balance INR 964 million and the other cash and bank balance, INR 263 million. So it's about INR 4,822 million on a very small financial liability of INR 132 [ crores ]. So it's a very good financial management, strong liquidity. What are we likely to use it for? Any greenfield projects or acquisitions? Or what are we likely to use this kind of liquid money that we have got? Sir, foreign exchange, the last year you have given -- you have declared dividend of INR 1 for the financial year, and you also given -- declared INR 4 handsome dividend of 200% for the financial year ending '24. For the current year already declared interim dividends. So it's very good, sir. We are pleased with that. And your sales were 9% high and your exports were about INR 2,850 million. Domestic sales were 9% higher and the export sales were down by 4%. That's all okay, sir. No, my only worry is that our margins are getting impacted over the last 5 years. When I see our -- the PAT margins are down compared to what they were 5 years ago. And our return on capital employed is also getting down. ROE has come down to 9% from 19% last 5 years ago, our ROC has come down to 10% from 24% 5 years ago. So we'll have to look at our margins also, sir. I wish the company all the best. We can grow. It's either to make more profit on low margin by expanding a lot of business or you make higher margins on a lower business. So it is for the company to decide how we'll make more profit, and we'll give dividends, sir. I wish the company all the best. Signing off, Vinod Agarwal from Mumbai. Thank you, sir.

Thank you, Agarwal ji. Thank you for your kind words.

Thank you, sir. So the next speaker in the list we have is Yusuf Rangwala. Requesting Yusuf sir to kindly unmute your audio as enable the video and then commence with the speech.

[Foreign Language]. First I am thankful to our Excellent Company Secretary [indiscernible]. This shows how we are caring in the company. [Foreign Language] Sir, when was the last bonus given. Many years have passed. Sir, point number 2, what is the total number of staff at present. Point number 3, in which country are we exporting, sir? Nothing more to add. I end my speech. Sir, if we actually [indiscernible] physical meet. Point number 4, if you can keep a small Diwali get together, so that we can meet you sir. We never meet sir, 5 years have passed. Now everything is open, everything is normal, we can go anywhere. Go also foreign sir. As you mentioned sir, now everything is normal sir. So my humble request at time of Diwali, please keep a small get together so that we can meet you sir. This is my humble request. And nothing more to add. Sir, nearby is a 15 August, sir, wishing you a very Happy Independence from my side and also thanks to our. Sanjay sir and his team for giving me a link and also calling me sir. Thank you very much sir. [Foreign Language] And I end my speech saying that praying to God. [Foreign Language] Thank you very much. [Foreign Language] Thank you very much.

Thank you, sir. So the next speaker in the list we have is Mr. Tushar Sodha, requesting Mr. Tushar sir to kindly unmute your audio and then commence with the speech.

Respected Chairman, sir, eminent Board of Directors and my fellow shareholders, my name is Tushar Sodha, and I have joined our virtual AGM from Mumbai. Finance and Secretarial departments deserve appreciation for our first ever integrated annual report. Many congratulations for the highest ever consolidated revenues INR 541 crores. I'm very happy to know that we are amongst the top 15 enzyme companies globally. It would not have been possible without the vision of Board of Directors, senior management team and the passion and dedication of entire team at Advanced Enzymes. Ours is virtually a debt-free company, and our company has managed to return almost the entire debt within the last 7 years. Despite several headwinds in pandemic, our finance department has done a wonderful job with a healthy and robust balance sheet. Sir, what is the percentage contribution of top 10 customers for total revenues. There have been very many acquisitions in the past 2 to 3 years, can we expect any further acquisitions? Advanced Enzymes has the second highest market share in India, kindly inform, which company has the highest market share. I think it is an unlisted company. Due to constant fluctuation in import material prices and elevated [ fleet ] costs, profit after tax margins are below 20%, which are at the lowest of the last 7 years. When can we expect this profit after tax margins to regain 28% to 30% levels. . Moving ahead, as a preeminent enzyme manufacturer, Advanced Enzyme Technologies is very well positioned to thrive in the growing global market. I extend my wholehearted support and wish all the very best to our company for a bright financial performance on a sustainable basis. Thank you, Chairman, sir for giving me this opportunity to put forth my queries and express my views.

Thank you, Tushar ji.

The next speaker in the list we have is Vinay Bhide. Requesting Vinay sir, to kindly unmute your audio and then commence with the speech.

Chairman, Mr. Vasant Rathi, Whole Time Director, Mukund Kabra, other distinguished Directors present at today's AGM. As already announced, I am Vinay Bhide, company shareholder, I'm speaking from Mumbai. At the outset, I will join the other shareholders in congratulating you for your first integrated annual report, not only the first integrated annual report, for what reading I have given to the financial year '22, '23 report so far, I will place your annual report presentation, the facts and the figures that you present in the top most of notch. I'm very happy about the presentation. I'll go straight away to my questions. My first question is on the global sales. What percentage of our global sales are realized from animal feed and annual enzymes? Out of the total revenues from this vertical, what percentage of sales is realized from India? That was the first question. The second question, Asia, ex of India, does suggest some revenue traction, could require a comment on this aspect of the business piece. The third question is on the CapEx and OpEx spends. Our CapEx and OpEx spends on information technology in financial years '21-'22 and '22-'23. Question number 4, who are our local and global cooperators in the areas of human and animal enzymes? The fifth question, the overall demand picture and price realization trends in the current financial year from our revenue verticals and geographies. And the final question, over the past 5 years, EBITDA margins have been best in the range of 44% to 46% and trending down up to 38% and 29% last year. The question here is that when, in your opinion, will we get back to our best EBITDA margin ranges in the times to come? Otherwise, I think we are a sound management with sound intentions and I must mention here that our CS team, Mr. Sanjay Basantani and all of them have taken a lot of efforts to ensure our participation. I close with best wishes to you all. And thank you for giving me the opportunity to speak and look forward to meeting you again next year.

Thank you, Vinay ji.

So that's all about the speaker. Requesting Chairman, sir to proceed further.

I sincerely want to thank all of the participants asking various different queries. Some of them are repeated ones, so hopefully I'm going to try to answer all of the questions which have been put forward. One of the question was who are our main competitors? There are many companies which compete in this space because it's a specialized space and there are companies on local and global level. There are like Novozymes, Anthem Biosciences, Titan Biotech and Animal [indiscernible] Biotech. There is [indiscernible] life sciences in India, Infinite Biotech. In a global market, there is ADM, Codexis, DSM, Kerry group, et cetera. Now there is another question which was previously asked, what is our CapEx program? During this year, we put the CapEx of around INR 20 crores to INR 25 crores, we are expecting to put the CapEx in that particular range. Further as informed earlier, we are also expanding our current R&D capabilities in Nashik to which we'll be spending around INR 25 crores within next 3 years or so. We are expanding our R&D capacities -- capabilities to much higher level. Currently, we spend approximately 5% to 6% of revenue on R&D. Regarding what did company declares last dividend bonus and how much? Let me tell you the [ interim ] dividend for rupees -- for FY '24 of INR 4 per share declared by the Board of its meeting held on May 13, 2023. And interim dividend payout ratio was 200%. Final divident of FY '23 of INR 1 each, which is 50%. Bonus shares issued by the company on March 15, 2007, and March 18, 2010, in ratio of 1:1. So company is constantly looking to benefit how we can benefit and how benefit of the company goes to our shareholders, our employees, and overall, our customers satisfying our customer base with the new and improved products. There is another question asked by somebody that what is our company's strength -- employee strength at this time. On a standalone basis, the total number of employees as of March 31, 2023, for AETL is 322, in which there are about 250-plus males and about 70-plus females. And on a consolidated basis, it is about more than 750 plus. There are various different expenses that have been asked, you can look into our balance sheet, but you will get all those numbers for the year -- current year. Now how many subsidiaries are profit making? Somebody asked me. We have about 12 subsidiaries, out of which 8 subsidiaries are profit-making this year. There can be loss in other 4 subsidiaries due to one or other events, but those are not continuous loss making subsidiaries. They are making profits. There is a lot of improvement going on and lot of interchange in the products are happening, those companies, which can overall contribute to our further profitability of this company. There is a question asked about our export turnovers and which countries do we export. Now by standalone AETL has an export of about INR 975 million and consolidated export is about INR 2,850 million. These products are exported to 49 different countries across 5 continents. And I appreciate to someone explaining that. With this, we are -- our country gain a lot of foreign exchange, hope to help our country in this manner gain some export dividends. Now Dnyaneshwar ji Bhagwat asked who is the competitor? I already told you that before, in the earlier query. What are our percentage [ of stake ] in domestic and international market. Now in standalone, our domestic sales are about INR 2,140 million, export share is INR 975 million. In consolidated, we have a domestic sale of INR 2,566 million, export sales of about INR 2,850 million. So to answer your question on that particular area, there's a huge market segment. We are also niche marketing on a certain particular segment of healthcare, and animal nutrition. I don't think -- we are long way to go to become a substantial player in the international market, and we have a lot of opportunities to develop and expand our market segment. There's also question, would like to know our views regarding the growth in the coming financial year. As explained in my previous or early presentation, we've given you the details about our first quarter report which you will see that we are on the right track with the 22% revenue growth, somewhere at upwards of 40% and 70% on the EBITDA and PAT. Hopefully, we have charted the path to this year to grow. There are a lot of still hangovers from last year. The pressure on raw material has been eased a little bit, but a lot of different challenges. We don't know where the fuel costs will go, what will happen in the international market vis-a-vis why in Europe. So they are a lot of other areas in there, Internationally, they have expectations of recession, which the peers are eased a little bit, but still there are a lot of uncertainties. Having said all of that, still we feel that we should have very good year this year financially. And hopefully, we take care of our Board of Directors will pay attention to various different growth factors in our shareholders. I thank you for all your various queries. Hopefully, I answered most of them. Is there more questions? Yes. Tushar ji asked some questions. I'm sorry, Tushar ji asked what is the percentage of contribution of top 10 customers on our total revenue. Last year, our top 10 customers gave probably about 24%, this year gave 24% and FY '22 it was about 28% just to give comparisons. Now Advanced Enzymes has a second highest market share in India. You asked what is -- kindly inform, which unlisted company has the highest market share. That's the Novozymes India. There is somebody asked -- Tushar ji asked, I mean, can we expect any further acquisition? Acquisition is a continuous process. This don't stop with acquiring 1 or 2 companies. If we find a strategically -- we have an opportunity for inorganic growth. We will definitely evaluate them from time to time whenever they come and suitable decisions will be made for considering our future growth by our Board of Directors. A similar line of business, it has to be a combined synergy gain, operational conveniences, and of course, our liquidity and market positions. So we will be looking to all of those -- based upon those, we'll be looking always at some opportunities in the market. And there's a question, it's called due to constant fluctuation in input material prices and elevated fuel costs, profit after tax margins are at below 20%, which is lowest of about last 7 years. When can we expect this margin to regain same level at 28% to 30%? We're constantly working on improving our margins. However, due to -- as you rightly pointed out, lot of incremental processes and increasing elevated cost in fuel and raw material, logistic cost was very high. One of them are subsiding currently. And that will definitely help in our -- improving our margins, okay? Last couple of years -- quarters, we have observed that input cost including logistic costs are softening. Customers are also gradually accepting slightly higher stake prices. This should help us to regain some margins which we lost last year. And however, regaining of the 28% to 30% PAT margins based on the current scenario is really difficult to predict, but we are constantly working at it, improving our operational costs. Moving ahead as the preeminent enzyme manufacturer Advanced Enzyme Technologies is very well positioned to thrive in the growing global market. Yes, we are constantly working to stay focused and keep consolidating on sustainable of businesses throughout the global scenario by increasing our new market territories and strengthening our current market position. I hope I answered all your queries. If at all there is anything left, we're more than happy to answer them if you can send it to us again. Well, thank you so much.

Sir, a couple of questions. Mr. Vinay Bhide has asked. So with your permission, I can answer those questions.

Yes, go ahead, Beni.

Yes, so his question was about animal nutrition business. So what is the percentage of global sales, realized from animal feed enzymes and what is the total revenues from this vertical? What percentage of sales is realized from India? . So Bhide ji this is about overall 13% of our business from the animal nutrition business, out of which 9% comes from India and 4% comes from the International market. Another question was Asia, ex India, does suggest some revenue traction. Your inputs, please? So yes, if we look at our FY '22 and FY '23 numbers, the growth is about 43% from INR 332 million to INR 473 million. And that is the trend which we can also see in the current quarter. So it's like appears to be a kind of effect when you look at the numbers as well as the trend. Our CapEx and OpEx spends on information technology for FY '22 and FY '23. So OpEx was about -- our CapEx was INR 6 million on IT, and this was INR 24 million OpEx as compared to INR 7 million of CapEx and INR 12 million of OpEx during last year. So total, we spent about INR 30 million this year on IT as compared to INR 19 million in the previous year. Another question was over our demand and price realization trend in the current financial year from our revenue verticals and geographies? Bhide ji, this information, we have covered in very, very detailed manner. You can refer page 46 to 56 of our annual report where we have given a vertical-wise global scenario of the market. And our vertical-wise sale numbers as well as geography-wise, revenue we have given on page 268 of our annual report. I think the last question has already been covered by Vic sir, about the EBITDA margin and the trend about whether we can expect a similar margin of 44%, 46%. So that has been covered by Vic sir and he was responding [indiscernible] question because he was asking more on the PAT, but then PAT and EBITDA margin go hand in hand in that sense.

Okay. Thank you, Beni. Thank you all for the patience hearing and for offering your suggestions. I have replied, Beni has replied most of your queries received from the members. Members who are present in this virtual AGM today and I have not used the facility of remote e-voting earlier to cast their vote on the resolution mentioned in this notice and otherwise not there from doing so, are being provided e-voting facility at the AGM which is available and continue to remain open for 15 minutes after I conclude here. Most of you who came and gave your suggestions and ask some questions, voted for the resolutions and those who did not vote, would like to vote, it will be open for another 15 minutes after I conclude. Mr. Shiv Hari Jalan, a proprietor of Shiv Hari Jalan and Company Secretary has been appointed as scrutinized by the Board for scrutinizing the entire e-voting process. The report on voting results will be submitted by the scrutinizer to the company. The voting results shall be declared by the company on receipt of the scrutinizer's report within the prescribed time lines as per the applicable regulations. The scrutinizer's report will include combined results of the votes cast by the members through remote e-voting and votes casted electronically at the AGM. The report will be submitted by the company to BSE and NSE stock exchanges, and will also be uploaded on the website of the company. Before we conclude, I, on behalf of the members of the Board, would like to thank the valued shareholders, customers or suppliers, bankers for continued contribution, support and trust without which the company would never be able to achieve the results that we did. I extend my sincere thanks to all my colleagues on the Board for their guidance and support. They are always there to help and guide us. I also convey my gratitude to the management, employees and the business associated for their contribution to the performance and growth of this company. As informed earlier, the e-voting facility for all the resolution mentioned in the AGM, [ voting ] shall continue to remain open for the next 15 minutes. Subject to receipt of the requisite number of votes, the resolution shall be deemed to be passed today, that is on the date of this 34th AGM. With your consent, I and other Board members would sign off now, wish you good luck, good health, be safe and thank you for all for joining us on this AGM. Thank you very much. Jai Hind.