Indoco Remedies Limited ($INDOCO)

Ladies and gentlemen, good day, and welcome to the Indoco Remedies Q4 FY '26 Earnings Call hosted by Dolat Capital. [Operator Instructions] I now hand the conference over to Ms. Candice Pereira from Dolat Capital. Thank you, and over to you, ma'am.

Thank you, Rutuja. Good evening, everyone. I, Candice Pereira on behalf of Dolat Capital, welcome you all to the FY '26 Earnings Conference Call of Indoco Remedies Limited. I would like to thank the management for giving us this opportunity to host the call. Today from the management team, we have with us Ms. Aditi Panandikar, Managing Director; Mr. Sundeep Bambolkar, Joint Managing Director; and Mr. Pramod Ghorpade, CFO. I will now hand over the call to the management for their opening remarks. Over to you, sir.

Thank you, Candice. Good afternoon, everyone. Thank you all for joining this call. Let me draw your attention to the fact that on this call, our discussion will include certain forward-looking statements, which are projections or estimates about our future events. These estimates reflect the management's current expectation of the future performance of the company. Please note that these estimates involve several risks and uncertainties that could cause our actual results to differ materially from what is expressed or implied. Indoco does not undertake any obligation to publicly update any forward-looking statement, whether as a result of the new confirmation, future events or otherwise. Thank you so much. Now I'll request our Managing Director, Ms. Aditi Panandikar, for her opening comments.

Yes. Thank you, Pramod. Good afternoon, everybody, and thank you for joining us on our Q4 FY '26 call this afternoon. It gives me great joy to announce that after almost 6 quarters, we are in positive in this quarter for performance. This performance has been possible due to a great acceleration shown by international formulations business, both in the regulated markets as well as emerging markets. While in India, as the season did not support performance, quarter 4 numbers were muted. Anti-infectives and respiratory, in particular, gave a significant hit. However, at the level of product-wise prescriptions generated, almost all our main and important products are showing good growth in prescriptions, emphasizing the fundamental strength of the brands and ensuring that there is great demand for those products in the market. In U.S., we received approval for the ANDAs of liquid orals for brivaracetam and lacosamide. In India, we launched a new brand extension of Cyclopam, our #1 brand. Our API manufacturing plant at Patalganga made us proud with the EcoVadis score. We were also recognized for our CRO work at IDMA's Annual Day. I'm also happy to announce that as of January this year and even for the month of -- on max basis for the month of March, Rexidin-M Forte Gel has become the most prescribed stomatological brand in the market. We also overtook as a company in prescription audit, we have overtaken Pfizer to become the 20th most prescribed company for the number of prescriptions we generate. Last week, Indoco entered into an agreement to hive off its ophthal business in India and Africa to Sunways. This move was made in the interest of our wonderful brands and portfolio, which should now get the requisite attention they deserve and therefore, grow. This hive off could also help us at Indoco focus on areas of strength and those which are our core areas for growing the ethical business. The OTC business has also done well and our efforts to add presence of our products with the grocers, the modern trade and quick commerce are underway and should soon give promising results as well. The macroeconomic factors at this time are certainly not at all conducive for doing business, especially as regards the cost of goods and the likely disruption in exports. We hope as a management to steer our business with responsibility during these tumultuous times. Thank you once again, and I hand over to Mr. Sundeep now to take you through the quarter performance.

Thank you, Aditi. Good afternoon, everyone. Let me first begin with the business highlights. Stand-alone net revenues of the company for the fourth quarter FY '25-'26 are at INR 4,291 million compared to INR 3,411 million for the same quarter last year and INR 3,896 million for the immediately preceding quarter, that is Q3 of FY '26, growing at 25.8% and 10.1% growth, respectively. Consolidated net revenues of the company for the fourth quarter are at INR 4,559 million compared to INR 3,839 million for the same quarter last year and INR 4,343 million for the immediately preceding quarter with 18.8% and 5% growth, respectively. Stand-alone EBITDA to net sales for the quarter is 14.7% at INR 630 million compared to 1% at INR 35 million. And for immediately preceding quarter, EBITDA was 6.6% at INR 259 million. Consolidated EBITDA to net sales for the quarter is 10.9% at INR 497 million compared to minus 0.2% at negative INR 8 million last year. And for the immediately preceding quarter, 7.3% at INR 315 million. Revenues from domestic formulation business for the quarter are at INR 1,739 million as compared to INR 1,851 million. Major therapeutic segments like vitamins, antidiabetics, stomatology, gastrointestinal and cardiac performed well during the quarter as compared to the same quarter last year. Revenues from international formulation business grew by 94.6% at INR 2,147 million compared to INR 1,104 million. Revenues from reg markets for the quarter grew by 78.3% at INR 1,401 million against INR 785 million. Revenues from U.S. business for the quarter grew by 77.5% at INR 546 million as against INR 308 million. Revenues from Europe for the quarter grew by 68.7% at INR 786 million as against INR 466 million. And for South Africa, Australia and New Zealand, the quarter grew by -- the base being small, the revenues were at INR 692 million as against INR 122 million. Revenues from emerging markets for the quarter grew by 134% at INR 746 million as against INR 318 million. Revenues from API business for the quarter degrew by 23% at INR 315 million as against INR 409 million. And the services part MSFS, CRO and Indoco Analytical Solutions for the quarter grew by 65.3% at INR 895 million as against INR 467 million. That is all about the business highlights for the fourth quarter. And I now request all the participants to put forward their questions. Thank you very much for your patient listening.

The first question is from the line of Sajal Kapoor from Antifragile Thinking.

The performance is definitely a recovery sequentially for sure, and that's heartening to note. I have a couple of questions around the receivables and the debt, if I may. So the stand-alone trade receivables grew 45%, while revenues grew only about 9% and Q4 alone saw a disproportionate spike. So can you break down the receivables aging and identify which geographies or channels are driving the elongation of collection concerns and confirm what percentage of Q4 revenue was kind of recognized on shipment versus actual receipt because it's kind of looking slightly disturbing and the interest payments and the debt. So both the working capital, receivables and the MSME payables are getting stretched. That's one concern. And the other one is the overall debt levels. It has been alarming for a while now. It's probably getting worse now.

So I will quickly answer your question. Can you hear me?

Yes, I can.

And then Pramod will probably give you more details. For this quarter, in particular, what you would have seen is that the international business has done so well. And typically, our collections for international business, especially collections for the emerging market international business have a long credit period. So that has probably impacted. Coming back to the borrowings and happy to share that the efforts are underway to ensure that the borrowings get reduced at the earliest. And with performance improving, I'm sure we will be able to do that. But I will allow Pramod give you answers on some of your questions.

So Mr. Sajal, as Madam mentioned, specifically about the receivables, you're right. Our fourth quarter performance, if you see the -- in terms of our exports to reg market, which is overall up by close to about 28%, 29%. Out of that emerging market growth is about -- significant growth, I would say, in fourth quarter, where we have receivables longer receivable, I would say, as compared to domestic business and API business. So that is the primary reason of receivables which are -- number of days of receivables, which are going up. Your second question about the overall loan position, that remains more or less same as compared to last year March '25. We are at total consolidation level, we are at INR 960-odd number, long term, INR 620 crores and short term of INR 344 crores. More or less that was the same position during last year. In between whatever repayment commitment were there with the funders, banks which we have repaid along with interest, plus additional borrowing in some pockets initially during 6 months for our CapEx. But of course, we are very sure in terms of servicing the debt along with interest with the EBITDA number, which we would like to maintain during the next 4 quarters.

Additionally, as we have disclosed earlier, there is very tight control on CapEx now and good effort is going on to bring down the operating expense also going forward. This should all help.

And just one follow-up. Can you help me double-click on supplier payables and the MSME dues because they have risen sharply.

Yes. There has been some -- where we have not paid suppliers on time, given some of the cash flow situation we had. But I'm confident within a week, we should be able to settle this.

The next question is from the line of Nirmam from Unique PMS.

So my first question is on the domestic business. Now as you mentioned in the opening remarks also that the season was not good for us. Do you see this growth coming back in the next, say, year or 2? And secondly, considering we have seen prescription growth, so is there some way that we can -- I mean, what is the challenge when we see prescription growth, but then the medicines are not sold. So one is that? And secondly, is there any more optimization on the portfolio front? So I think we discontinued some tail brands during this year also. Further, we've sold off some more ophthal division also. So any more such reasons for the next year?

Okay. So I'll start with your first question on the what we call primary, secondary and tertiary, which is the prescription growth. So typically, the numbers you see in IQVIA or any of the agencies like Pharmarack on our products is what we consider secondary that is what is sold from stockists to retailer. And then the number of prescriptions we generate, we use it as a measure to understand demand for our products and therefore, the absolute offtake at the chemist counter, which is tertiary. So if you look at, first of all, what we call primary, which is the booking of sales, that for the quarter ended March is often dependent on the motivation morale and how many people in your field staff are actually going to do the annual target. And they start going a little low despite of all efforts from our side. We always see this kind of a performance. I'll give you an example for -- let's take the category of -- I mean, if we take stomatological itself, then as per IQVIA, we are down only by 8%, but my primaries are down 20%. And then if you look at the prescriptions of those products, they are all in high growth. What it simply means is that if you're seeing an Rx performance now, then your IQVIA should follow after that. And unless there is too much stock in the market, your primary should automatically get corrected. However, you are concerned about if we are really generating demand, what if our products are getting either substituted or not available. For that this year, in particular, we are undertaking a major exercise to reach out to the stockist who stock our products and the retailers. I can give you some statistics directly and indirectly, our organization reaches around 150,000 chemists. That is both through volume remedies, which is OTC arm and our own prescription business. However, if you look at availability of Cyclopam, it is available at 3.5 lakh chemists. So generally, it is prescriptions and demand created, which is expected to make a product available. That is how we work. But typically, because our products are seasonal, what always happens is when the season doesn't come in, you see the stock is not very motivated to increase the inventory carries on certain products, and therefore, we go muted. Down the line, there are very few shortages because there are stocks in the market. Let's take our product, for example, which is urinary alkalizer and typically does very well in summer. But this year, in the month of March, I think there were a few rains also and summer did not kick in the way it should have. So if you look at internal performance, it is down for the quarter, it is down 10% and Q-o-Q, it is down 1%, but in IQVIA, it is growing. And the other day, I had a Pharmarack review where they disclosed that in the market, there is less than 30-day stock of this product. So typically now it should fire. But these are not things we can always control because always motivating the stockist to purchase from us pretty much depends a lot on many factors, including the morale of the field staff who are going to do their annual target. I hope that answers your question.

Yes, ma'am. And the second thing on the noncore.

Okay. So ophthalmology in particular, I wouldn't say it was noncore for us because we had a division. We tried to create 2 divisions. We were very bullish on it because as you know, we have filed several ophthalmic ANDAs in U.S. So as a therapy, it remains an area of attention for us. But in India, for the last 4 years, we were not able to grow the business too much, and it remained very much dependent on whether conjunctivitis came in or not and things like that. And at the size at which it was, we could not give it enough attention. So that is why the high growth. Other than this, if you look at the present portfolio we hold, most of it is coming within the 4 or 5 main segments of the company. So you will have products either in respiratory anti-infectives, stomatological, GI or vitamins and minerals, which is carried by our gynac division. At this point, I don't see any more such identified opportunities for the India business.

Okay. And just to confirm, so this division was also not done to tide over the liquidity situation, right, because.

No, it is absolutely not. It is a very small division. At primary level for internal sales for the year, we have clocked INR 37 crores in India. And we have to recognize that we are 13th player in this market where companies like Entork, Sunways, even very small organizations are able to get a lead on us. Obviously, because for them, it is a very, very fundamentally core area of business. So they approach it differently.

Coming to our international business, so we've seen good growth across all the markets, U.S., Europe. So we expect this traction to continue in the next year as well. And particularly for the U.S. because our sterile products are -- I mean the plant is still not resolved. So do you see this growth continuing in the U.S. without the FDA approval?

So what we have done, which I have said on earlier calls, is for our key products, we have gone into adding second sites. So much of -- some of the sterile sales for U.S. that you've seen this quarter has actually got build from those sites, and that has helped. So therefore, what will really impact us if the plant situation doesn't get resolved really is the future approvals, which should be coming on time. But otherwise, we are okay. Of course, we carry and continue to spend a lot on that side. So that really is an area of concern, and we are trying to resolve that as soon as possible. But other than that, U.S. today is not just pairing on ophthalmics. We do considerable amount of solid orals and now we are getting into liquid orals as well. Also the U.K. and Europe business has done very well. And we have a decent order book right now, and I'm sure our team will work very hard to continue this kind of performance.

Sure. So one question on the interest cost for this quarter. So if you look at the consolidated numbers, the interest cost has gone up materially. So is there some ForEx impact also here?

Yes. So I think it is particularly coming for oral remedies. Therefore, it comes in the consolidation because there was one loan in foreign currency. And as such, it is notional unless the war goes on and on and on, then it will actually impact us. But maybe Pramod, would like to say something?

So this quarter, exchange loss itself on a foreign currency loan, ECB loan is substantial. Almost half a portion of this finance cost is towards the exchange loss.

So INR 20 crore impact?

INR 24 crore impact.

INR 24 crores.

Okay. And what would be ECB loan.

EUR 10 million.

The next question is from the line of Kenil Mehta from Boring AMC.

I had one question. Last quarter, we had a loss of INR 34 crores and we had a net worth negative of INR 34 crores. This quarter, it's INR 82 crores. Any reason why FPP, which has seen increase in sales from INR 35 crores to INR 48 crores has seen a negative net worth of INR 50 crores in this quarter increase.

So Kenil, as you know, for FPP, it is early years, it's all about investment. So the negative net worth, which you see is the losses incurred during last couple of years. And we expect now this to turn around in coming years. But the net worth which you are referring is the impact of the losses incurred since acquisition till today.

No. Last quarter, as per your result press release, it was INR 35 crores negative net worth. This quarter it is INR 82 crores. So what is the reason of INR 50 crores jump in a quarter?

Kenil, if you look at -- as you know, HPP had a historical business of purchase and sale from others. And it typically depends on the portfolio of FPP in that particular quarter. So whenever FPP only sells products supplied by Indoco, we do much better. But when they are purchasing finished goods from others and selling, that margin comes down. So if you look at sale of FPP and the COGS, that is where you see the maximum jump.

Kenil, you are looking at consolidated number, which includes not only FPP, but Warren also, another legal entity. There also, we have a negative number. So that is both put together, not only FPP, but FPP plus Warren.

Okay. So you have not classified the Warren part in that?

Warren, as you know, is an OTT business, and we have very clearly decided that for at least 3 years, we will consistently support it for advertising and any other things required to build that.

We have sold a lot of products in Europe market based on product basket in 2025 and 2026. But based on your export data, we are not seeing that expansion in that product basket, except for allopurinol and paracetamol and colchicine.

Okay. So what happens is, as you know, Europe and U.K. there is major fluctuation in pricing. So sometimes some of these small molecules, if the current business environment doesn't support in a manner that we should make margin on it, then we choose not to sell. Sundeep would like to say something.

Yes. See, besides allopurinol and what you mentioned, colchicine, we are also selling pregabalin and zonisamide very well, these 2 molecules. So with contract manufacturers, of course, there's cetirizine, there's paracetamol, zonisamide, pregabalin, colchicine. So there are many products. We are not dependent on 1 or 2.

But we have a lot of approach like apixaban.

Apixaban should come in soon.

Okay. And on the API business side, as we have got approval for the Warren Remedies part, should we see the increased scale up now for that part of business too, for consumption?

Yes. So Warren Remedies doesn't yet have a reg market approval. So till now, it makes key starting materials for us, which we finish in Patalganga and sell in the reg market. Therefore, Warren Remedies actually carries -- we are not able to optimize it fully because what is made at Warren Remedies does not fetch reg market prices as of now. That is partly the reason Warren Remedies financials also get disturbed.

And ma'am, I wanted to know any reason why we have got approval for apixaban, but only we have supplied very negligible compared to other peers or capture the market share over the last 6 months, for U.S. market?

We have got approval only for [ one strength ].

The next question is from the line of Maulik from B&K Securities.

Ma'am, just wanted to understand what has driven the growth for our U.S. business. So I understand you answered that sterile products, which were site transferred drove growth. So what else was the reason why we witnessed this growth?

So same quarter last year, in particular, if you remember, we were undergoing a major part of our master manufacturing cycle at 2 of our large solid oral sites, plant I in Goa and Baddi III. Plant I in Goa in particular, supplies solids to U.S. And this plant, therefore, had got impacted as in we could not supply it to optimum requirement. And it is not just ophthalmics, but we also have a considerable amount of solids coming as well as ophthalmic -- if I'm not mistaken, I know for the year, but quarter, it should be -- oral solids are sterile is only 12. So rest is all orals solids

Okay. Sterile is INR 12 million and the rest is?

INR 12 crores.

We've got quite a basket of solid orals.

And they are doing well.

And also, there was one exceptional gain for 4Q. Can you just help us quantify? I think in the notes, it was for full year, so I was not able to understand. Can you help with that, please?

Which number you're referring to, sorry?

Around INR 34 crores of exceptional gain, I think, in 4Q number?

No. You are talking about other income? Other operating revenue, it is INR 16 crores exchange gain on the foreign currency.

Sorry, ma'am, sorry, my mistake, it is INR 3.7 crores, sorry.

What is INR 3.7 crores in exceptional gain. I have no idea. Some small amounts like revaluation of gratuity, et cetera.

Related to the labor code?

Yes.

The next question is from the line of Nirmam from Unique PMS.

So just 2, 3 questions on the balance sheet items. So one is, there's an entry asset classified as held for sale in the balance sheet about INR 23 crores. So what is this regarding?

We have a land parcel we are looking at.

So we're looking to sell that land?

Yes, it was lying idle for the longest time.

Okay. Secondly, so in the cash flow statement, I could see some provisions for doubtful debt and that has increased year-on-year. So about INR 10 crores this year. So are we expect -- so is this in line with what we generally do or there is some issue?

Yes. So Nirmam, it's a combination of both. One is one of the parties where we have supplied some material that have declared their bankruptcy. So that is one. So we have provided for that. And second is, this is in line with our policy for provision for bad debt based on the hedging analysis, we do provide for bad debts. Some old hedging where we are discussing with them in terms of certain stocks, expiries, price differences. So on a safer side, we provide for those receivables.

Now coming to Warren again, so this quarter also, I think we have a loss. And I think because of the advertisement that we did in the World Cup or something which you mentioned in the previous call. So what level of OpEx or advertisement do you have budgeted for the next year? And what kind of growth can we see in Warren?

So the business has, I think, grown from 90 or 92 or 94 last year to 120, 130 this year. So that is a good jump. All our key brands, Sensodent-K, KF, Kidodent as well as the new launches, DSP and DCP of the Sensodent family. The Sensodent DSP, DCP has been well received, the first consignment which has gone into the market. We are now looking for additional orders. And as such, the division looks set to continue to grow. Of course, we need to add more products to the basket in order to justify because we have close to 350 people in the field. So with 3 or 4 products, it's not very effective. We have a few toothbrush also, which our team calls fillers, they are doing well now. But Kidodent in particular, which used to be Rx product only has been taken OTX. So both the ethical team as well as the OTC team sort of focuses on this brand and it's doing very well. So with the toothpaste, I have less concern despite all the advertising expenses, et cetera, et cetera, the toothpaste side of the business at EBITDA is doing decently all right. It is the API CapEx done and the operating cost at API level from where we are really not able to sell anything right now because most products are under validation. So once you see the API side turnaround, it is likely to take a couple of quarters more, then the Warren Remedies stand-alone will also start looking good.

So about 1 more year for the approvals and the validations to get over?

Yes.

Okay. And so again, on the emerging business, we saw pretty good growth this year. And so you mentioned in the past call that we have a good field staffing there and doing good work. So do you expect this to continue over the next 2, 3 years? Do you have the portfolio basket, the products and approvals?

Yes, certainly. I think Sundeep could.

Yes. I'll just come in here quickly. Yes, we do have a very impressive basket in our portfolio. And we are mainly operating in Eastern Africa, that is Kenya, Tanzania, Zambia, these 3 countries where we have field force on the ground and about 8 countries in French West Africa, that is Ivory Coast, Mali, Burkina Faso, Benin, Niger, Cameroon, Senegal and Chad. So these are our main areas. And it is absolute promotion, scientific promotion that is getting us prescriptions. And secondary business is more important to us, which is actual sale from the grosses as they are called, the stockist in these countries to the retailer. And that is being measured. We also have a software installed there, HiDoctor. So sales force effectiveness is getting measured in a very proper way. And we are measuring the per head yield as we call it. That is how much per representative we are getting in terms of euros. So to answer your question in short, yes, the confidence level is pretty high for next 2 to 3 years on this business.

On the MMP that we had undertaken, so till last quarter, we were still facing some challenges, some customer approvals were delayed. So now is everything solved, we can only see growth from here. Europe business did show a good uptick, but any more challenges left?

If I'm not mistaken, a very small livery of paracetamol remains in the old smaller size in Baddi I, just one. But otherwise, almost all other customer approvals have come in. So we should be able to scale Europe and scale it with additional margin from here.

So we should still see some margin benefits coming in the next year, right?

Certainly.

The next question is from the line of [indiscernible].

So what is the debt expectation for this financial year and for the next financial year as well?

As we said, in IRL alone, there is INR 630 crores debt, which is combined and for the total, it is close to INR 950 crores. Of all this, our short-term debt which has to be repaid will be around INR 300 crores, right?

So next year, repayment is INR 140 crores.

INR 140 crores for the next year. So INR 140 crores to be repaid in the next year -- coming year.

So during 2027, is there any plan for any reduction?

Yes, obviously.

So what would be the number? Is it INR 147 crores is for this financial year or the next financial year?

So Mr. Madhav, so next financial year, which is '26-'27, we have a commitment to repay INR 140 crores, another INR 140 crores in a year after that and almost similar amount after in '28-'29. So about INR 140 crores every year for next 3 years. While our objective, our target will be to repay or to prepay a little more than this.

Okay. Is there any additional CapEx than the normal CapEx are we planning for any CapEx expansion kind of the current year or next year?

No, we don't plan any major CapEx now in the next 2 years.

Yes. Okay. On the Europe side, when I was talking to Mr. Sundeep during Q2 FY '26 call, so there was an update from him is that, he want to update on the Clarity Pharma. There was 15 products for the 18 months. I think that 18 months are really completed by now. So currently because Europe is doing well, and is there any contribution come from that so any light management want to share with us on the Europe, the Clarity Pharma business?

So Clarity Pharma, as Sundeep had told you that time has several products. And probably at that time in Q2, when we spoke to you, a few were being transferred. Now some more products, especially in liquid category are also going. However, as I said in answer to one of the calls earlier, we are very careful. The whole focus of being on ground in U.K. is to be able to get more margins and not lose it. So if we see that the market is not opportune on price front, then we hold. So in that manner, Clarity business is yet to come to a sizable level where we can talk about.

Understood. Anyway, that's natural that you are taking active participation depending upon the market situation. On the domestic front, so I think there is -- we could not know -- other than the legacy product, we cannot bring any other products for the flagship product rather than --

So we have done extremely well on new launches. I think fourth quarter, total new launch has contributed to more than INR 2 crores --

INR 20 crores, in this particular financial year.

In the financial year, INR 20 crores. And we are getting a sizable amount in new launches and they are doing very well. So products like Cital-PM6, Dropizin, Drotitec M, then we have Nosic-OD, OH D3, we have Vepan CV, [indiscernible] a lot of new products as well as brand extensions being launched. The latest product which we have launched in this quarter is Cyclopam AC Suspension. There's also -- all our new products are being received pretty well. So on that front, I think -- sorry.

If you can add all these things in the management presentation, that will be helpful.

The next question is from the line of Maulik from B&K Securities.

Just wanted to understand what are our growth figures for the regulated markets for the next year, which is FY '27, '28?

So for the end markets, of course, the Europe business of base contract manufacturing will continue to grow. But more than top line growth, that business is likely to give us better margins in the coming year because it could be manufactured in plants which have completed all its MLP scale-ups and all those things. In U.S., while historically, we were only dependent more on sterile, we have now added a substantial solid oral base, and that is also doing very well. In this year, both in Europe and U.S., we intend to launch our liquid oral, which is not as crowded a space as other solids, and we expect to do well here also. So there are a lot of plans, a lot of products filed being approved and getting approved also. And you will see a good combination of efficiency in manufacturing with the value-add of good orders in place, helping us grow these businesses.

The next question is from the line of Kenil Mehta from Boring AMC.

Would like to know what is the capacity utilization for our oral business Warren Remedies out of the 4 lines. What are the initiatives we are taking to increase our sales other than OTT, export or contract manufacturing for some bigger players?

Yes. Thank you for that question because we have started exports from that site through -- at this stage to South Africa, manufacturer of toothpaste. I don't know whether it will come in this quarter. INR 37 lakhs, a small amount to start with, and we are seeking other such opportunities. Meanwhile, about 4 lines you said. So we have actually installed only one. So all the provision was made, we have installed only one. There was a second line of mouthwashes, but we have not gone for that yet because we continue to make mouthwashes at other locations. So capacity utilization of the toothpaste block is not a very big concern for us because we have set up a state-of-the-art unit, and we are able to make 5,000 kilo batches with only 5 people in site. So that is our better managed plant. So we really have good control on efficiency in that plant. It is the API plant, as I said, where we have both capital expenditure done. We also have operating expenses because we are doing validations of products. But these validations are not resulting into sales right now because those products are not yet approved out of that site. And that is putting pressure on the entire Warren Remedies numbers. As somebody said earlier, it will takes us one more year to get market approval. We are trying to hasten it by wearing sight of a product from Patalganga to Auric. Hopefully, that should bring U.S. FDA faster, but I cannot promise that.

Understood. And one more question, ma'am. India business over the last few quarters, we are seeing growth in cardiac and antidiabetic. Is it due to low base or we have launched new products?

No, it is -- our base is very low, which is why you are seeing the growth.

Understood. And what would be the actual revenue base you will see growing for the India business apart from the OTC, in line with IPM or it will degrow?

In line with IPM.

Understood. And during the quarter, FPP was technically profitable as we have seen in last quarter, if we exclude the Warren losses?

No. FPP, as Pramod explained, we were impacted with some extraordinary costs which were taken at the end of this quarter on expired products, et cetera, which is why it has been a hit.

Negative INR 4 crores.

Almost INR 4 crores was impacted, but also the product mix. So we actually looked into this because the COGS on the Q4 sales of FPP have been extraordinarily high. Because some of our products are not -- we do have a few products in our basket, which don't get very good margins. And when we sell more of that or when we have to do a shelf stock adjustment or things like that, in that quarter, you see a hit.

So going forward, will we see that again or it will reduce as we have seen increase in it.

It should reduce.

And can we get the new product sales revenue mix in the overall India business during the year or quarter?

I think we have done close INR 20 crores in new launches this year in India. And one of the highest has come from Drotitec M, it was done well. [indiscernible] there are many products. What we could do like somebody requested is possibly from next time if possible in the FDA will give you a note to all this.

And ma'am, if you exclude the anti-respiratory and anti-infective, which has seen degrowth over a [indiscernible] seen the volume growth. Is it correct?

Yes, there is another category which got impacted in this quarter in particular, which is the urological, which is our urinary alkalizer, Cital. But like I explained, that should kick off this. So because of season, there are shifts in these products. You get it sometimes in Q4, then sometimes in Q1 of the next year, depending on how summer or rains kick off. So for India business, it is better to look at a MAT performance to review whether the products are doing all right, what is happening to them because otherwise, there will be these kind of peaks and troughs.

And ma'am, the asset for held sold land, is it at the book value or we will get more value than we have shown on the balance sheet right now?

We should get more. This is book value.

The next question is from the line of [indiscernible].

What is the revenue for the current quarter madam?

For the year, it's INR 120 crores. I think this quarter --

This quarter is INR 27 crores.

INR 27 crores. Yes.

Okay. And so what is the plan for -- I mean, so how much reduction in interest expenses can be considered for both stand-alone and consolidated for the current financial year madam?

So Mr. Madhave, if you see our repayment schedule is INR 140 crores, as I mentioned, and our average interest rate is in the range of 8.5% to 9%. So you can consider that much reduction in overall interest cost.

Okay. So then the INR 960 crores minus INR 140 crores means around INR 120 crores reduction will be there.

Yes, about INR 140 crore repayment, if you consider in a staggered manner, then average cost of borrowing is just short of 9%.

As there are no further questions from the participants, I now hand the conference over to the management for the closing comments.

Yes. Thank you, everybody, for joining us on this discussion and call and for the very interesting questions you have asked. Wishing everybody a great weekend ahead. Thank you.

Thank you.

Thank you very much.

Thank you, members of the management team. Ladies and gentlemen, on behalf of Dolat Capital, that concludes this conference call. We thank you for joining us, and you may now disconnect your lines. Thank you.