Viyash Scientific Limited (512529) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to SeQuent Scientific Limited Q4 FY '21 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Abhishek. Thank you, and over to you, sir.

A very good morning, and thank you for joining us today for SeQuent Scientific's earnings conference call for the fourth quarter and full year ended financial year 2021. Today, we have with us Manish, SeQuent's Managing Director; Sharat, Joint Managing Director; and Tushar, CFO, to share the highlights of the business and financials for the quarter. I hope you've gone through our results release and the quarterly investor presentation, which have been uploaded on our website as well as stock exchange website. The transcript for this call will be available in a week's time on the company's website. Please note that today's discussion may be forward-looking in nature and must be viewed in relation to the risks pertaining to our business. After the end of this call, in case you have any further questions, please feel free to reach out with the Investor Relation team. I now hand over the call to Manish to make the opening comments.

Thank you, Abhishek. Good morning, friends, and thanks for joining us so early in the morning. A very warm welcome to all of you who have joined us for our Q4 and FY '21 earnings call. As Abhishek mentioned, joining me on this call is Sharat Narasapur, our Joint Managing Director. I must apologize on behalf of Tushar Mistry, our CFO, who is on this call but will not be able to actively participate. Tushar had a cardiac intervention last week and has joined the call at my request, even though he has been advised rest. He shall be more accessible in about 10 days' time once the compulsory rest period is over. The year gone by has been different for the world, as also for the animal health industry in general, but more particularly for SeQuent in more than one way. I will actually take an opportunity to give a little larger commentary this time. So -- and I hope I have that privilege. I would like to start with some thoughts on the industry. Globally, animal health industry got distinctly separated from human pharma since about 2013, and this trend is now extending to India. Carlyle's investment in SeQuent and the recent development around Zoetis' animal health business point towards unleashing the potential of Indian animal health companies globally. I would like to believe that this is just the beginning and that better days are ahead as the Indian animal health industry gains traction and attracts more and better talent as well as visibility. The year gone by has been a landmark year for SeQuent in more than one way as we demonstrated the strength of our unique business model in a very challenging and unpredictable environment caused by the pandemic. Even though we were partly insulated because of the nature of the business or the nature of the industry we are in, COVID did come with significant operational challenges. In addition, there were multiple initiatives at SeQuent, led by the change of ownership during the first half of the year. We have used this opportunity to build even a stronger framework of governance for sustained growth. We also had extensive engagement with various consultants in second half of the year to establish a framework for growth or what I would like to call SeQuent 2.0. I'm glad to say that the SeQuent team overcame the operational challenges, facilitated a smooth ownership transition, including the new and the very diverse Board, and worked with various consultants to charge the way ahead without taking their eyes off the day-to-day operations. None of this would have been possible without the steadfast support of 1,700-plus employees across geographies. At this stage, while I would like to express my gratitude to the employees for their commitment, I'm also pained that all of this came at a cost, especially during the deadly second wave that hit us hard in India and at SeQuent. Two of our employees lost their lives in India with almost 20% of the organization's total employees affected, most of them in the second wave. While lives cannot be replaced, both the promoters in SeQuent, as also the corporate SeQuent like corporate India, rose to the occasion and has contributed to the financial and mental well-being of the employees. As the report says, a third wave is expected, and I hope and believe that we are better prepared as a country as well as a company to deal with the same. As we speak, 90% plus of our staff has received minimum 1 dose of vaccine, and it is a matter of time before everyone in the company gets inoculated. On the business front, during the year, we commercialized 3 new APIs and made 4 VMF or U.S. filings, taking our total filings to 23 with the U.S. in addition to our 11 CEP approvals on the API front. We also had our first formulations filing in the key markets of U.S., Canada and Australia. One of our key products launched this year, tulathromycin, our first formulation development from Indian R&D center, delivered ahead of our expectations. Our R&D team is working on a strong pipeline of 35-plus products under formulation and 8-plus molecules for the API business. We also signed a multiyear, multiproduct agreement with a large animal health company, marking our foray in the CDMO business. The agreement entails co-investment by them at our Vizag facility and shall contribute to our growth from calendar year '23. As mentioned in our earlier earnings call, our debottlenecking project at Mahad is completed, while the capacity expansion for formulation at our German facility had to be deferred to FY '22 due to COVID-related execution challenges. The first phase of Vizag expansion project is now complete and operationalized, while the second phase will be completed in the coming year. This will enable us to deliver on our business requirements and also maintain growth momentum in the coming years, even as we aim larger in the next journey. Our India business has been a key performer during the current year. While we built on our strength in India, we also operationalized a multiyear, multiproduct arrangement with Zoetis, which was operationalized from 1st July 2020. We also consolidated our minority interest partners in Turkey, Belgium and Netherlands during the year with Brazil to follow during the current year. Before coming to financial performance, I wanted to bring to your attention that during the financial closing for the year ended March 31, 2021, the management detected certain instances where revenue in respect of certain sales transactions were recognized on dates earlier to those allowed by the group's revenue recognition policy as well as certain modifications of underlying documents relating to revenue recognition. The management brought this to the attention of the auditors and the Audit Committee. And under Audit Committee supervision, a detailed review was undertaken, and all cases of such nonadherence where revenue recognition was accelerated were identified. The Board has taken the findings on record. The financial implications, though not material, are comprehensively detailed in the note to the results. We have corrected the processed leading to such nonadherence, and we'll continue to strengthen them further. And there is no continuing impact. Further, during the year ended March 31, 2021, the company has reviewed and revised the amounts of foreign currency translation of goodwill arising on acquisition of foreign subsidiaries. Goodwill arising on such business combinations is translated from functional currency of respective foreign subsidiaries to INR, which was hitherto being translated to the functional currency of the acquiring entity. This adjustment has had no impact on the P&L statement. Coming to performance for the year. Our revenues have grown at 15.5% during the year with our formulation business outperforming our overall growth. Formulation business performance in Q4 has been particularly encouraging with key geographies of India, Turkey and Brazil clocking impressive growth, even as Europe getting back on growth track as well. Our EBITDA from operations stood at INR 61 crores for the quarter and a little over INR 237 crores for the year with operating margins at 17.4%, while our net profit stood at INR 95 crores for the year with a growth of 36%. With consistent strong cash flow conversion of upwards of 70%, we have been to -- we have been able to reduce our net debt significantly even as we invested in consolidation of minority interests and CapEx. We expect this momentum to continue, and we expect to be a debt-free company within next 2 years, subject to any inorganic opportunities. We continue to place a high priority on the productivity of our capital utilized and are pleased to see our ROCE rise from 7.8% in FY '18 to 20% plus in FY '21. The Board has also recommended a dividend of 25%. The stable revenue growth, sustainable expansion in margin profile with the continuous reduction in debt has also led to a rating upgrade from -- a 2-notch rating upgrade during the year. This is testament to our robust financial performance and resiliency of our unique and sustainable business model. The company has also rolled out a new ESOP scheme in March 2021 to align the long-term interest of management and employees to the long-term business goals. I would now like to touch upon what lies ahead of SeQuent or SeQuent 2.0. Towards the end of Q3, we had engaged with advisers as also our Board to shape our new enhanced vision and strategy for the next journey. I'm happy to state that we now have an identified path to take, which will largely reflect in the bolder steps that we take as we expand our footprint into the key missing markets of the U.S., select EU and select Southeast Asian markets; make injectables as our core domain of strength both in terms of R&D as well as manufacturing; make a foray into the pet business in select markets of India, Turkey and Brazil; and finally, get into complex or value-added generics leveraging our API -- our strong presence in the API business as well. Towards this expanded vision, we shall be both scaling up our manufacturing footprint with investments in the region of $130 million over next 24 months spread across all geographies but also strengthening and upscaling our global management team. We shall keep you updated as more talent joins us. You would appreciate that some of these investments will be significant, keeping a long-term view in mind and will have limited impact on business over the next 2 years. We expect to reap the benefits of these initiatives after a couple of years. Therefore, while we continue to guide towards a mid-teens revenue growth in the medium term, we shall also be investing in building our organization and governance structure for the larger vision for SeQuent 2.0. As we transition the company towards higher growth and governance trajectory, the Board, the management team and employees are both committed and excited by this opportunity of creating a true powerhouse in animal health from India. With this, I now open the session for question and answers.

[Operator Instructions] The first question is from the line of Mr. Bharat Sheth from Quest Investment.

Congratulation on good set of number. Manish, your commentary is very, very bullish. So if one has to really look at -- I mean, from 3 to 5 years because currently, whatever you have said that we are investing in some of -- expanding the -- for a bolder step. So if one has to really look at from 3 to 5 years perspective, where would you put our company in absolute vision, so if you can say? And what would be the EBITDA margin currently if we are investing in building a team and also for a growth opportunity?

Yes. Thank you, Bharat-ji. So if you look at our past, we have been guiding to a mid-teens revenue growth and a 150 to 200 bps margin improvement. Yes, what we are doing today is we are taking a break from that in terms of margin expansion because we are building up now the next level of infrastructure for even a faster growth that will start showing up in next couple of years. So that's the only thing we are changing. I think the revenue growth and the momentum of the business will continue. However, we will use this opportunity to scale our ambitions. And while I cannot guide you to numbers because it is a blend of both organic and inorganic initiatives, but I can assure you that the next journey will be bolder, will be bigger, and certainly, I believe, with better outcomes.

So when you are talking on high-teen growth, we can -- mid-teen growth, we can understand. But EBITDA, what could be -- I mean, see, if we are taking a break, so from 1.5% to 2%, which earlier we were looking at, so it will remain at stable or maybe a gradual improvement or may decline because of some of the investment, which will be in the OpEx nature.

Yes. So I think, again, I will look at the longer-term picture rather than getting into short term, 1 or 2 years, because there is an ESOP cost also, which is a booking of expenses. It is not a noncash -- it is a noncash cost. But having said that, where I'm coming from is the margin expectations of, say, 5 years down the line stays intact or maybe even better than what we had originally forecasted. What we are only suggesting is that the next 2 years, we are not going to chase margin expansion but chase capability buildup. If it means that margins expand slightly slower or even dips a little, I think that's not the objective we are focused on. But if we fail to build up the capabilities, I think that will be more disappointing in this journey. So with the new Board, we have a very clearly articulated direction where we are headed. Certainly, we need to upskill and upscale for that vision. It will call for some investments, both in physical infrastructure but more importantly on the management bandwidth. And when you hire global talent, I think that's what we will be building on. So the 5-year journey will be far more exciting is all I can say. But guiding margins for the next 2 years is slightly difficult at this point of time. It will not be something that will change dramatically, but we are not going to chase margins at the cost of growth.

Okay. Now second, our foray into this pet business in India, Brazil and Turkey you say. So how big is the opportunity really you see, maybe over a little longer-term perspective, 3 years to 5 years?

So again, it will be a meaningful opportunity for our scale of business. But putting numbers around it is inappropriate at this point of time because it will again be a blend of organic and inorganic initiatives.

Okay. And last bookkeeping...

Sorry to interrupt...

Sorry, one bookkeeping question, if, Manish, if you can permit?

Yes, please, Bharat bhai.

So of course, Tushar is not there. So I'm not sure whether we have answer. But I've been looking at cash flow of full year as well as the tax provision, where the cash flow outflow is much higher than the tax provision. So any color, if you -- one can share or we can take later on with the -- from Abhishek or Tushar?

Yes. I think this question is better answered by Tushar. So if you can allow us a couple of days, Tushar will -- yes.

The next question is from the line of Mr. V.P. Rajesh from Banyan Capital.

Congratulations on a good set of numbers. My first question was just on the API side, which showed very low growth in this year. So if you can just provide a little more color on what the plan is on the -- on that side of business?

Rajesh, I'm not sure if I got your question right. Can you please ask again?

Yes. So Manish, my question is regarding the API business. The growth this year has been very low. So I'm just trying to understand how one should think about that piece of the business over the next 3 to 5 years.

Yes. So I think if you take away the -- see, we were growing at about 18-odd percent in the API business in the first 3 quarters, and the growth has been slower in the last quarter. So all in all, even otherwise, it is -- while it is slower than the formulation side of business, it is still a 14% growth in our API business for the year with some slowdown in Q4, which is largely coming from certain -- let's see. We have 1 product called albendazole, which is a WHO procurement product as well. And there has been certain slowdown for right reasons because WHO obviously is diverting their investments into other areas at this point of time. So it's a temporary blip in that sense. And we do expect us back to mid-teens revenue growth in the API side of the business, which is not very different from an overall business growth even for this year.

Correct. Okay. That's helpful. My second question is among the one-off expenses that you have listed out, are there going to be anything which is going to be recurring, especially the consultant line item, the first one?

Yes. So obviously, the ESOP cost, which is a noncash cost, is going to be recurring. And that's why we have clearly articulated this is a 1-month impact. So you'll have to multiply it by 12 for the first 12 months impact of -- or FY '22 impact. This impact will keep reducing as we go along because of the nature of accounting, which is through a Black and Scholes model to be done on this. So that is one cost which will certainly stay. Some of the -- I won't say consultant costs because consultancy was kind of one-off cost in -- or a onetime engagement. But there will be certain elements of continuing costs in different forms because we -- so you would have seen that we have brought in this concept of Advisory Board, and we will be tendering that as we go along. So some of these costs will continue, but it will not be the kind of lumpiness that you saw in this current year.

[Operator Instructions] The next question is from the line of Mr. Saket Mehrotra from Tusk Investments.

So the first question is on this Indian market growth for the full year. We've seen almost 100% increase. Is it because of, say, the rearrangement with, say, some of our partners? Or did we start tapping into newer opportunities? So any color on this and what can be a sustainable rate going forward?

So certainly, I think if you look at our Indian market performance, a part of this growth is coming from our commercialization of Zoetis portfolio, and part is coming from our own business performance. And I would kind of split it 50-50 between the 2. So certainly, as we go along, while the growth will taper, but we do expect to maintain fairly rapid growth in that India business even going forward.

Okay. The second question is on this Strategic Advisory Board that you got. You've put a slide on that on Slide 7 of your investor presentation. So any sort of more details you would want to give on this, what is the thought process behind this?

So see, if you look at the last part of our deck, which is about SeQuent 2.0, you will see that fundamentally, we are transforming in this next journey from a branded generics animal health player to a specialty-branded generics animal health player. And to that extent, we will need to bring in people who have those kind of capabilities, connects, knowledge about this industry. We have to see the future. See, as a generic company, we are a backward-looking company. When I say that, it is about existing products and creating demand or replacing demand. We are now moving to a direction of creating demand, and that requires people with very different mindsets. And this entire Advisory Board is to fill up those capabilities for us. Does that make sense, Saket?

Yes. Yes, it does.

Thank you.

The next question is from the line of Mr. Rushabh from Pravin Ratila Shares.

Just one question on the steep devaluation of Turkish lira that has happened in Turkey, and we have close to 15% of our revenue coming from Turkey. So does it at all affect financial statements in this period and the coming periods?

Not at all. So clearly, see, the way we operate in Turkey is we keep readjusting our price list after a couple of months based on the -- how the currency behaves. So while technically or officially tagging with the dollar is not allowed in Turkey, but in an informal way -- I won't say informal way, but you keep an eye on that. And based on that, you keep revising your price list. So there is no sustainable impact. In fact, you will see that our Turkish business is performing very well. It continues to perform ahead of our expectation. And it actually serves as a good opportunity for scaled players like us, because these kind of devaluations impacts the smaller players in the country and gives opportunity to the larger players to gain larger market share.

But we do have our receipts in U.S. dollars only, right? Or is it in lira, I mean, the kind of sales we do in Turkey? Just wanted to understand the business front of it.

Yes. So all -- everything in Turkey is done in Turkish lira. The sales are in Turkish lira. Obviously, most of the expenses are in Turkish lira. A small part of expenses which relates to the API purchases from outside Turkey will, of course, be in foreign currency. So to that extent, there will be certain exposure but through a blend of exports. And also, I mean, regular financial monitoring, those are fairly well contained.

Okay. Okay. Okay. And just one question on slightly a longer-term outlook. So 2 years back, I even read the con calls of SeQuent Scientific. And there, you used to guide that we would have -- by 2022, we would have a return on capital of close to 20%. And somewhat the management has walked the talk. So like going down the line, presently, we are a INR 1,300 crore top line company. So as and when we grow to a INR 2,000 crore, INR 2,500 crore top line crore company, would it -- would we see a net profit of close to INR 500 crores, which is like a 15%, 20% sort of a margin going down the line 5 years? Some sort of guidance, if you can give on that front?

I cannot see that long in the future, honestly, as well. We know the journey. We know the curve we are chasing. I think financial outcomes are best determined by people who are closer to this. Our job is to stay focused on business. I can assure you that the curve going ahead will be steeper in terms of outcomes, but I would refrain from giving any guidance around numbers.

Okay. Okay. And just a small bookkeeping question, if I could squeeze in. So our other expenses for the quarter 4 of FY '21 have risen quite substantially. Last quarter, we had some INR 65 crores, INR 66 crores, and it's now almost INR 10 crores plus. So what is this component which has led to the increase in these other expenses?

So that -- I think that more or less is explained in that EBITDA bridge because we hired consultants and engaged them on various initiatives. So Slide #11 of our investor deck will explain that. Other than the ESOP costs, which would have gone into the employee cost, all others would have gone into other expenses.

And the next question is from the line of Mr. [ Dewan ] from family office.

Manish, if you will be patient enough to listen to my questions, I've got a couple of them. But to start with, this Advisory Board that you have now constituted and then the appointment of a consultant, it does appear that you have written off more than what you can chew. And you are really struggling for skills. And this is something becoming very unwieldy for you. You are refraining from giving any guidance, which is all right. But it really does appear that you are floundering in terms of managing the acquisitions. Can you give me some insight into this?

I think -- I don't know what gave you that impression that we are floundering and that's why we are seeking help. What we are seeking is technical guidance around the industry, around the future. We are not -- this is not execution guidance. It's all about getting multiple perspectives around the future of this industry, and this is transitioning from a branded generic model to a specialty-branded generic model. So I don't think it's about seeking help for execution. It's about co-creating a larger framework for the way forward.

No. Having an Advisory Board and a consultant and at the same time, you are also talking about upskilling and upscaling, these are all kind of counterintuitive. Please explain what is the -- when you say it is upskilling, what is the upskilling that SeQuent is looking for?

So when you get into specialty generics, can the same R&D team deliver? Answer is probably no. We need to bring in the next level of capabilities. So what is happening at SeQuent is with the change of promoters, we are establishing a new vision for ourselves. It is not that we are continuing the same vision. We are now upscaling the vision, and upscaling our vision also calls for upskilling of the skill sets of the organization. And that's what we are building as part of this journey. Clearly, Carlyle is looking to upfront the investment in the first 2 years because only then being in a pharmaceutical equivalent industry, it takes 3 to 5 years for your investments to start paying off. That's what we are doing. I mean, I cannot take away the impression you may be having, but it is a very well-thought-out initiative that has been taken. It's -- these advisers are -- were brought in to help us co-create the vision because it's not a very well-documented industry. You have to bear that in mind.

But that's the reason why I thought that this is giving that kind of an impression that it is very difficult to manage. Anyway, I understand where you are coming from. The other question that I wanted to understand from you is, are there any regulatory changes that are happening in the market that SeQuent is operating in, which possibly will require the company to reorient its strategy?

Not really. Our industry is extremely and fairly regulated, in line with human pharma. I don't see any changes happening in that regard.

Sorry, Manish. Let me clarify, I'm sorry. I might have given an impression -- I'm not talking about SeQuent and the business that SeQuent is operating in. I'm talking about the customers that SeQuent has. Are there any regulatory changes that is impacting the animal industry? And is that going to have any impact?

Yes. So again, I don't think there are regulatory changes happening, but there are directional changes that may be happening. And that is why I was referring to this entire thing of specialty generics or how the industry is going to transform over the next couple of years, okay? And that's the preparedness we are working towards. It is not regulatory. It is about customer preferences, and every industry undergoes that.

[Operator Instructions] The next question is from the line of Mr. [ Prasad ], an individual investor.

Yes. I would like to know how much ESOP impact there are in next year, in FY 2022.

Yes. I think if you multiply the number that has been disclosed into 12 would be probably the impact for the current year.

Coming around INR 60 crores to INR 65 crores. That is what will be the impact?

Yes.

Okay. And so you said you can't -- we cannot, let's say, increase EBITDA operating margin. It will be around 15% to 17%. Tentatively, we can take it as such? Last year, we have done 17%, right? So we can consider 15% to 17% will be maintained for next 2 years?

Yes. Don't hold me to it, but I think that should be more or less there.

The next question is from the line of Mr. [ Karan Sharma ], an individual investor.

Yes. Sorry, my name is different. But anyway, congratulations for a good set of results. I was wondering if you could provide any color on the CDMO deal that you have signed, maybe the size of the deal or whether it can impact our top line materially?

Certainly, it is material for our API business. I'm assuming you're referring to the -- which particular deal did you refer to?

The CDMO multiyear, multiproduct deal.

Yes. Yes. So it is both CDMO and also product supply business, covering about 2 products on the CDMO side and 6 products on the product supply side, which is our existing products. Certainly, it is going to be relevant for our API business. And that's why we are guiding towards the mid-teens revenue growth even on the API side of our business. It will start contributing meaningfully from calendar year '23. But does it make a huge difference at the corporate level? Answer may be yes but limited.

Okay. And my second question is the foray into the pet market that we have. I'm curious to know whether we are only targeting India, Brazil and Turkey markets. Or do we also have a strategic vision for targeting U.S., Europe and developed markets for the pet products?

So I will respond to this in 2 buckets. So in Europe, we already have a pet business. So the markets we operate in, we sell both human -- sorry, both large animal and pet products. If you look at real differentiator of SeQuent, it is really our 3 key markets of Brazil, India and Turkey, which are high-growth markets with their own unique set of challenges. That's where now we are getting into building our existing business by getting into pet business. Our U.S. strategy is -- currently, we are building up a portfolio of pet products. But we have not looked at how we will commercialize. And that is something which we will probably look into as we get closer to the commercialization. So we -- in a nutshell, we certainly have a pet strategy at the back end of it. But purely from the U.S. angle, we do not have a clearly articulated commercialization strategy, whether we'll do it through partners or on our own.

The next question is from the line of Mr. Hardick Bora from Union Mutual Fund.

Well, congratulations on achieving this 20% ROCE mark, Manish. This is -- I mean, I think, clear to some of the participants that you really have walked the talk. So I'm sorry, actually, my network was weak, and I missed the line on the guidance. I think you are refraining from giving any guidance for the next year. But just as far as the long term, the road map was laid out by SeQuent a while ago. That 5 years -- 3, 4 years down the line, that does not materially change, right, as far as the revenue and the profitability trajectory is concerned. Just wanted to have your view on that.

Yes. So Hardick, what we are saying is, historically, we have been guiding towards a mid-teens revenue growth and a margin expansion of 150 bps year-on-year. What we are changing is that we are no longer guiding to margin expansion in the short run because we are building up costs for upscaling and upskilling for the next wave of journey. So we continue to maintain our revenue growth margins for the medium term, and we do expect revenue growth to actually accelerate in the later part of the tenure. But for that, we need to build up costs, and that's why we are not giving any margin expansion guidance. That's the only change we are doing. But -- just to add one more thing. But overall, we expect that SeQuent 2025 should be bigger and better than the earlier vision that we had for the company.

Okay. Okay. That's helpful. Okay. If I may follow up on this, till what year do you expect that these costs will basically hit the profits before contributing to the top line? So could one expect this near-term pressure to be there for 2 years, 3 years, just to -- if you could give me that idea?

No. I don't expect pressure. It's just that we are taking away the expansion guidance, okay? So we are not saying that the margins will start dipping or those kind of things. We are saying that expansion is no longer what we are chasing. We would rather invest and build up a better future. And this will be typically for next 18 months' time, not longer context.

Okay. Yes, fine, understood on that part. One is on the balance sheet. So we still have some shares of our -- the side group of Solara now. So just wondering if there's any plan on reducing that, also selling that stake as well?

So we have always maintained that this is treasury investment for us. And as and when needed, based on the guidance of the Board, we will look at monetizing it for right reasons. But it is, in a way, growth capital for us.

The next question is from the line of Mr. [ Rishab ] from Edelweiss.

Am I audible?

Go ahead, [ Rishab ]. Line is not very good, but let's see.

Okay. So what are the plans for the year in terms of inorganic growth? Have we started looking out for a possible target or the company plans to build its own portfolio organically there?

[ Rishab ], I don't think I could understand the question very clearly. But I did understand that you were referring to something around inorganic growth. Now inorganic growth, certainly, SeQuent has grown inorganically even in the past. And we are always open to inorganic opportunities. Today, we do have access to a wider network through the Carlyle system for evaluating or seeking inorganic opportunities. So it's something which is ongoing. Very difficult to set any targets around it because we are not going to chase a number of targets around inorganic. We are chasing strategic opportunities as far as filling some of the missing gaps in our portfolio, either in capability or in the market. So inorganic will be always a bit opportunistic in that sense.

And what are the plans for the United States specifically in terms of growth opportunities?

Sorry, [ Rishab ], I don't understand your question.

Just a second. Just a second.

[ Rishab ], your line is not very good. So I would suggest you...