Q1 2027 Fredun Pharmaceuticals Ltd Earnings Call
Speaker #1: Conference call may contain forward looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on the date of this call.
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Speaker #1: Ana, I'm the conference over to Ms. Saki Panjiyara. Thank you, and over to you, ma'am.
Speaker #2: Good morning, everyone. Thank you for joining the Q1 FY27 earnings conference call of Fredun Pharmaceuticals Limited. We have with us today Mr. Fredun Medora, Managing Director of the company.
Speaker #2: Before handing over to Fredun sir, let me briefly walk you through the company's performance for the first quarter of FY27. During Q1 FY27, standalone total income stood at $228.25 crores, registering a strong higher on wide growth of 90.44%, EBITDA stood at 32.78 crores, reflecting a growth of 92.90 year-on-year growth.
Speaker #2: EBITDA margin improved to 14.36%, expended by 18 BBS year-on-year. Net profit of the quarter stood at 13.17 crores, registering a growth of 94.63 year-on-year growth.
Speaker #2: Net profit margin improved to 5.77%, expended by 12 basis points. Overall, the company delivered a new growth during the quarter along with an improvement in operating margins and profitability.
Speaker #2: With that brief overview, I would now like to hand over to Mr. Fredun Medora. We can open the floor for the Q&A.
Speaker #1: Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press *1 on the touchstone telephone.
Speaker #1: If you wish to remove yourself from the question queue, you may press *2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles.
Speaker #1: A brief disclaimer: in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to one per participant.
Speaker #1: The first question is from the line of Minocha from VS Ventures. Please go ahead.
Speaker #3: Yeah, good morning, sir.
Speaker #4: Good morning.
Speaker #3: Yes. Yes, sir. So congrats on a good set of numbers. So you have almost delivered FY23's full-year revenue in this quarter only. So where can we see Fredun in next 3 to 5 years?
Speaker #4: As I've been always saying, we are there are two parts of the growth story. One is our new age brands which are growing at around 35 to 45 percent year-on-year.
Speaker #4: Some are growing even faster because they are at a lower base. And our vintage business is growing at around 15 to 20 percent year-on-year.
Speaker #4: So a blended growth of somewhere around 35 to 30 percent for the next 3 years is kind of kind of on the charts and and it's it's it's going to be a combination of all the new brands and our existing ones plus the increase in the capacities that we are building currently at our own facility and also around with our 5 plants in Palder.
Speaker #4: We have added around 43 locations where we are manufacturing. So those products for years will also add in. It will give a a very good boost to the sales and the product line in the coming 3 to 5 years.
Speaker #3: Okay, sir. Thank you. That's all.
Speaker #1: Thank you. The next question is from the line of Mayur Parikh from VY Capital. Please go ahead.
Speaker #3: Yeah, hi. Good morning. Can you hear me?
Speaker #4: Yes, I can hear you. Good morning.
Speaker #3: Yeah. So I just wanted to know, like, can you just throw some light on the company's domestic growth opportunity? Like, Fredun GS is currently president across 17 states.
Speaker #3: And our strategy mentions that deeper penetration into Tier 2 and 4 cities. So how large could this opportunity become over the next 2 to 3 years?
Speaker #4: So the GX GX is currently now now in around 19 states. And we are at a very small base of this year, about 100, 110 crores only.
Speaker #4: So we have a very long way to go in in terms of GX. Also, we've got a very good acceptance of our goods. Our goods are very well accepted in the market.
Speaker #4: Plus, along along with our promoted brands such as our pet care brand, our nutrition brand, our mobility brand, our our other products which are also sold in some of in common chemist shops.
Speaker #4: So the the the pharmacies, the people, the distribution line, feel very confident that there is a vast array of products across therapeutic ranges coming from this company.
Speaker #4: And they are more than willing to hold more and more of our goods. And actually sell them. So plus the repeat repeatability of those products are quite high.
Speaker #4: So we are again, it's the same thing. We are very under-promise kind of people. We expect 30 to 25 to 35 percent growth in this business year-on-year, even for the next 5 years.
Speaker #4: We don't anticipate any hiccup. Because we are at a very small base. So we have a long foresight ahead. We have planned for the next 3 and a half to 4 years.
Speaker #4: Anything more than that, I would not want to commit. But for the next 4 years, we we can easily consider around 30 to 35 percent growth on the GX line as well.
Speaker #4: The market potential is huge. Some big companies are doing thousands of crores of GX. Product penetration I mean, I'm talking about pharma penetration itself is very poor in our country.
Speaker #4: Even in 2026, there are a lot of people under 49 as well. So many people are not even having access to medicine. Forget Fredun GX or anything.
Speaker #4: So in the next 10 years, definitely as India progresses, as people come out of the poverty line, even 1 percent of the people is like a small country in Europe.
Speaker #4: So we have a long way to go. Our aim is to ensure that our supply chain is robust. Our aim is to ensure that our products reach the customers in time.
Speaker #4: And the product basket keeps on enhancing itself with the latest molecules and with the addition of further products to enhance the product basket as an overall offering.
Speaker #3: Okay. Okay. Got it. Thank you, Francis.
Speaker #1: Thank you. The next question is from the line of Keshav Toshniwal from Kanakala Capital. Please go ahead.
Speaker #3: Congratulations, Fredun, for excellent send-off numbers. Your new website vaga.in looks super interesting. Like, if you could expand upon what kind of developments have happened and what you're seeing this span out like.
Speaker #3: It's looking excellent, website.
Speaker #4: Thank you. So as as we have taken over the the website and and the company last year, first we spent about 3 to 4 months creating the team.
Speaker #4: Because as you know, a strong team who has built websites and e-commerce platforms for a long period of time. And we successfully e-commerce platforms.
Speaker #4: To get that kind of team, engaged and formed, it takes time. But luckily, we were lucky enough to find the right kind of people.
Speaker #4: Then we started onboarding all our all our brands. Almost all the brands are complete. I think within the next 20 to 25 days, practically every single big brand in the country will be onboarded.
Speaker #4: We also have now onboarded our pharmacies. So we have a huge, almost a 1,500, 2,000 product range of medicinal products also that you can order from various brands across across companies.
Speaker #4: So it it is already one of the most comprehensive pet care portals right now. Even in our beta phase. We've had a soft launch around 15th of June.
Speaker #4: We are going to have we are testing the, you know, deliveries and and small bits and issues, the hiccups. Again, as I was telling you, we are creating a pet parenting platform.
Speaker #4: It is not just an e-commerce platform. Many people have started now latching onto it and started changing their websites to calling pet parenting. But we will have we are already having a list of readers, a list of trainers, a list of groomers, a list of dog walkers, and a list of doctors plus we have our own diagnostics.
Speaker #4: So that will link on on the website. To offer those services, we are also tying up with various blood collection for pet blood collection.
Speaker #4: And we are also creating a profile and an online portal within the Vaga thing for blood collection and blood donation for pets. So it will be one of the most comprehensive websites in coming time.
Speaker #4: I think within the next 60 to 65 days, all our beta testings and all those things will be done. We are already live. People are already ordering from it.
Speaker #4: But we are still creating a stronger backend. Our warehousing is done. Our supply chain is done. So I think within the next say 90 days, you will see campaigns coming out.
Speaker #4: Partnership with various key players in the industry coming up. And a lot of exciting thing coming up. So Vaga is something to look out for.
Speaker #4: It's something personally I'm involved in on a regular basis because I really feel it is the need of the hour for pet parents especially as a pet parent.
Speaker #4: I know how important it is to have a 24 by 7 helpline. And that is also what we are creating. Even the look and the feel of the website, even from the current one, will be slightly different in the next 60 to 90 days.
Speaker #3: That's great. That's great to listen, Fredun. Thank you.
Speaker #4: Thank you.
Speaker #1: Thank you. The next question is from the line of Shreya Bajaj from Serene Alpha. Please go ahead.
Speaker #5: But just to add, what is the.
Speaker #1: Sorry to interrupt. Ms. Bajaj, may we request you speak a bit louder, please?
Speaker #5: Yeah. My question is already answered. But just to add that, can you guide Capex for FY27?
Speaker #4: Yes. In terms of Capex, as we are growing, we're expanding. Our goal by by end of December 2028 and early '29 is to be one of the largest manufacturing units that is in location in the country.
Speaker #4: We have a plan of about 30 to 40 crores of Capex in this financial year from now, from on onwards. Maybe the same plan for the next year as well, about 30 to 40 crores.
Speaker #4: At around 1,000 crores of revenue, about 2% is generally a maintenance Capex in itself because we have to constantly upgrade our facilities and machineries and and and and and create the latest what you say, protocols for our our new upgraded rules and regulations as per CGMP.
Speaker #4: So some Capex will always be there for for the plant for perpetually. But for the next two years, you're looking at around 35 to 45 crores per year for the next two years.
Speaker #5: Okay. I got it.
Speaker #1: Thank you. The next question is from the line of Nabendu Mondal, an individual investor. Please go ahead.
Speaker #3: Yeah. Thanks a lot for giving this opportunity and congratulations on the great set of results. Fredun sir, historically, I have seen that always the Q1 has always been weaker than the the Q4.
Speaker #3: So just had one question with regards to why exactly can you just elaborate on for the current Q1? We have seen an exponential increase vis-à-vis the last year.
Speaker #3: So what were the factors driving that? And do we see the future quarters to be maintaining this growth rate or it could be better than Q1?
Speaker #4: Sure. Sure. As as you have noticed, last 20 years our first quarter is always weaker amongst the four quarters. And that is because of the nature of the business.
Speaker #4: As we have sale targets, people have import targets, and distribution targets. So there's a lot of purchase that happens in the last quarter. And then when the orders start rolling in, it is around April end.
Speaker #4: So by the time the despises happen, the first quarter is always slightly it it optically weaker. However, for many years, that you I mean, the numbers can talk for itself.
Speaker #4: The first quarter is always improved versus the first quarter before. This time we have got a slightly higher growth. Yes, because during last last last year is the last quarter, because of the price fluctuation increase, we generally carry more stock.
Speaker #4: We as a company used to always have a slightly higher number of stock. We could book orders at old prices with our customers and got a better order book.
Speaker #4: We in fact told our customers that we will add in another if you give us further orders, we can kind of prohibit you with a very lower price increase than the world is giving.
Speaker #4: So we definitely got a slight boost from there as well. In terms of the coming quarters, yes, we will see growth. Yes, we'll see growth.
Speaker #4: It will be somewhat around the same kind of numbers that is there for the first quarter as well. Again, our growth and our numbers are something that we don't look at what we look at is consistency in terms of our product availability in the market.
Speaker #4: And also the new product additions that we are doing. We will we will see we will see a growth in all our numbers coming in from from say the next quarter or maybe the the quarter on.
Speaker #4: But it would be around the same level as the first quarter for this year. Next year also we are anticipating almost the same kind of growth in terms of in revenue.
Speaker #4: This first quarter we had a slight boost because we booked additional orders in the last quarter of last year giving our buyers a good price which they would have not got hencewhere and we asked them to book further orders as well.
Speaker #4: So yeah, we are we are on track. We're doing well. And I think next two to three years we will be on the same kind of growth trajectory as we have been right now.
Speaker #4: But I also I also want to add that though people are congratulating us for the numbers that we have shown this quarter, my highest growth was in 2008 and '09 when I've increased 110% year on year and 115% year on year.
Speaker #4: But because my numbers were so small, nobody congratulated me that time. So I I I really would want people to understand that we are consistently showing growth not for the last three years, four years, but for the last 19 years.
Speaker #4: And and as a company, we are 38, 39 years in the industry. And these numbers we have achieved after '39, '38, '39 years in the business.
Speaker #4: So yes, I understand that people are seeing our journey for the last five years. But honestly, I'm very proud of what we have been doing from the day I joined and from the day this company is incorporated.
Speaker #4: Because that is what is allowing us to grow right now.
Speaker #3: Yeah. Perfect. Thanks a lot for the detailed answer. I had one more question with regards to the.
Speaker #1: Sorry to interrupt. Mr. Mondal, may we request you return to the question queue for a follow-up?
Speaker #3: Just just one last question if that's okay.
Speaker #4: Okay. Okay.
Speaker #3: Yeah. I just wanted to understand about the functional foods division. How is it doing? How how did it do this quarter? And I believe in the last phone call you mentioned about the gen food which was a hit in the market.
Speaker #3: So how is it progressing? And how do you see the functional food growing over the next two, three years?
Speaker #4: The functional food is part of the pet care. And we have we are adding as I told in the last call also, we are adding about 42 kind of variants in functional foods.
Speaker #4: Our chain variant has picked up very well. Of course, in in certain pockets in the country, and it's done exceptionally well. We have also got our functional food response in all the metros very well.
Speaker #4: We also have a normal biscuit range which we are manufacturing. And which has got very good response in tier two, tier three, tier four cities.
Speaker #4: So we have a wide array of products one for the tier one cities and then others for the tier three, tier four cities. The functional foods are some are almost given in given by the doctors where the doctors say if you give treats to the animals, please give a snacky iron or a snacky say for the bone and joint, snacky for the gut.
Speaker #4: So so and so forth. We are also coming up with cat biscuits. I think we will be the second or the third one to have cat biscuit treats coming in.
Speaker #4: In the country. So that is also coming in. And we have creating a functional line even for the cats in in the coming six to seven months.
Speaker #4: So we are focused on it. We are looking at penetration and we are looking at product acceptance right now. Sales is not again again we don't want to dump the sales.
Speaker #4: We are not in the dumping game. So we want people to slowly take it any good growth is exponential in nature. We like to flatline.
Speaker #4: No problem. But our flatline in functional foods is also growing very fast because the treats are accepted. So many parents come in call our company directly saying that we love your product.
Speaker #4: My dog doesn't eat anything else. If I don't give him he doesn't start eating his food also. Or she is she was very having gut issues.
Speaker #4: But after taking a treat, it's doing well. So those small wins are more valuable to us than any number.
Speaker #3: Yeah. Thanks a lot. Thank you. I'll join back too.
Speaker #1: Thank you. The next question is from the line of Khushi Jain from Share India Securities Limited. Please go ahead.
Speaker #5: Hi. Good morning, sir. I'm congratulating on the numbers. Just one question I have on the working capital side. So could you just elaborate on the working capital side for this quarter and going ahead for next next two years?
Speaker #4: Yeah. So we are currently at now we're under around 850 crores. We have a working capital of somewhere around 170, 175 crores which is not a a high working capital for a company our size.
Speaker #4: We also have a lot of debtors. We have a good stock and we have almost 50% of our working capital as cash on hand.
Speaker #4: So we will definitely will are absolute number of working capital increase. Yes, it will increase. No doubt about it. At 2000 crores, at 3000 crores of revenue of course we're going to have a higher working capital.
Speaker #4: But that would be in in line with most manufacturing companies. Hopefully we will have further positive cash flows which will deter the requirement of higher working capital need from other bankers.
Speaker #4: But our goal right now is to go into the market, add more space, add more demographics. So next three four years are quite dynamic.
Speaker #4: But through higher margins, through better cash flows and through a strong repeatability that will reduce the customer acquisition cost, that will also improve the gross margins tremendously and net margins tremendously actually.
Speaker #4: So we are quite comfortable actually in terms of working capital.
Speaker #5: Okay. Great, sir. Thank you so much for this. And congratulations.
Speaker #4: Thank you.
Speaker #1: Thank you. The next question is from the line of Ashish Malani from Malani Family Office. Please go ahead.
Speaker #3: Hello. Am I audible?
Speaker #4: Yes. Hi. Yes.
Speaker #3: Hi Fredun. Congratulations on a good set of numbers. My question was on the line of interest rates. I just wanted to understand has that gained meaningfully because if we see year on year signals have grown significantly but quarter on quarter the interest cost has gone down.
Speaker #3: So is it because the warrants have gone down or the interest cost it in itself has gone down?
Speaker #4: Interest cost has slowly reducing our cash flows are getting better. So the interest is I mean we are using less and less of our limits.
Speaker #4: So that is also there. Of course there are certain spurts in requirement when we do some procurement or when we do some penetration for a certain states.
Speaker #4: But overall the need for working capital is reduced. Interest rates have also the interest spending versus the top line has also drastically reduced. If if you see the numbers in the first quarter it will reflect so.
Speaker #4: And we are we are we are on track to ensure that we spend very frugally on in terms of interest. However interest cost alone is not our focus.
Speaker #4: Our focus is to ensure that our products meet the market. For that if we have to have some temporary spending we will do that.
Speaker #4: Overall we are improving. Overall our sales versus our interest cost and are gone down. Yes because of our credit improval also we went from a triple B to a triple B plus hopefully we'll have better ratings in the coming years.
Speaker #4: So that has helped reduce the interest rate even further. And overall factors also has helped. So it's a part of accumulation of a lot of things and not just one thing in in particular.
Speaker #3: Got it. Got it. And just one more thing. Your inventory and inventory is you know have been on the higher side and I see a lot of that is there to support the growth.
Speaker #3: So what kind of inventory days are you targeting for this year?
Speaker #4: Yeah. So if you if you go to see our inventories inventory days were quite high four years ago. Then it that time people were asking how come you have so many days of inventory and and that time I was explaining people that boss if I have to launch five brands with multiple SKUs I require that kind of inventory to hold up two ball cups because there are 2100 products.
Speaker #4: Now on on 30 40% growth on the revenue the inventory increases by 10%. So that just shows that we are rationalizing. We are looking at around 140 135 days of inventory hopefully within the next four quarters it will come to around 120 days it will always hover between 110 to 125 days.
Speaker #4: Because of the nature of the business and the number of SKUs that we have. Also we have next four years we are into a hyper growth phase for our new age products in pet care in mobility in in neutra and in and in in cosmetics and so on and so forth.
Speaker #4: So for those reasons we will have to and many of the products we manufacture ourselves apart from just outsourcing. So we have those things.
Speaker #4: But they are rationalizing. You've seen the trend inventory days have gone down by almost 50% in the last two years. So we are okay.
Speaker #4: Quite okay with that.
Speaker #3: Got it. Got it. Thank you.
Speaker #1: Thank you. The next question is from the line of Nirali Shah from Ashika Investment Managers. Please go ahead.
Speaker #2: Hi. Thank you for the opportunity. I have three questions. So first one I have on the margin lever. What is the biggest margin lever over the next two to three years?
Speaker #2: Should we expect margin expansion to accompany the 30 35% growth that you've mentioned?
Speaker #4: Okay. So as I told you various lines of products that we have launched have different kind of gross margins in it. Pet care is works at around 40 to 45 to 55%.
Speaker #4: Mobility works at around 40 40 to 50%. Nutrition has a higher intrinsic margin but right now we are expansion. So we are looking at around 35 to 45% maybe even 45 to 50%.
Speaker #4: Dermacytics has a gross margin of 70% to 75%. But so so the blend of those margins coming in helps us improve our bottom line.
Speaker #4: Again our focus our our focus is not just solely to increase profits. Right now for the next three years our focus is to increase penetration increase product acceptance increase the conversion rates in terms of repeat orders.
Speaker #4: Now for that if we have to sacrifice on some of the margins we will do it. However because our vintage business is also getting more and more efficient and we are achieving more and more new registrations which are of higher margins and in in in better geographies and our GX also will cross about 110 120 130 crores.
Speaker #4: So there we'll have a slightly few percentage basis points higher price acceptance in the market versus a new entrant. So rate to growth margins are kind of in in play and and that is where it will head.
Speaker #4: As a company our margins are doing quite okay. We know the intrinsic margins within the next eight to 11 quarters I think complete continuously saying now around seven to eight quarters there will be a sudden spike in the profitability.
Speaker #4: Also because we will have a demo demographic reach almost completed as we have planned and then we'll slowly penetrate within those demographics for the add more products in those channels.
Speaker #4: So yes we are going to accept expect the growth of the margins in in line of what we have been growing and in terms of a top line as the as the top line grows there more and more new age products and and higher margin products are sold versus what was sold last year.
Speaker #4: So definitely there will be an impact in the bottom line.
Speaker #2: Fantastic. That was really helpful. Second one what revenue does the.
Speaker #1: May I request you return to the question queue for a follow up?
Speaker #2: Sure. Thank you.
Speaker #1: Thank you. The next question is from the line of Keith and Patrick and individual investor. Please go ahead.
Speaker #3: Hi. With the good start to Q1 can we target a revenue of 1000 crores and a bit of 100 crores this year?
Speaker #4: No I I have never committed something like that. I would never commit.
Speaker #3: Absolutely.
Speaker #4: Yeah.
Speaker #3: That's something that is a possibility.
Speaker #4: We are anything can be possible. But our our road map for last year was 570. We achieved 635. This year our target was somewhere around 800.
Speaker #4: I think we are in line to achieve that. We will cross that hopefully. 1000 I do not want to comment. I I am a very very very under promise kind of person.
Speaker #4: I hope you understand. And this is my trend for the since I have been doing these earning calls since I've been giving guidances since 2016.
Speaker #4: So yes we it optically looks that we are going to definitely reach a good number. We are hoping that we will overachieve our target.
Speaker #4: We are on track to overachieve our target. Will we overachieve? Let's hope so. We are working on it. And I I would want to give our partners our investors our our our people who believe in us something tangible and a positive news at the end of the year.
Speaker #4: Rather than overpromise something now. So we are on track. Yeah.
Speaker #3: Sure. Yeah. A follow up to that is the EBIT margins have improved a lot and I think they stand at about 9 to 10%.
Speaker #3: Do we keep that growing to about 12 13% in next say 15 18 months?
Speaker #4: I would not. Again business cycle reporting cycle in India in most of the places in the world is 90 days. Business cycle is not 90 days.
Speaker #4: So accuring a a fixed month to when the packs are going to come in is would be not correct on my part to give.
Speaker #4: But we are on line that within the next say 12 quarters we should be comfortably near that number. So we might do something even better.
Speaker #4: We might reach there it might take one quarter plus or minus. But one quarter is 90 days so if even if we achieve that number about 100 days post the plan on a 40 year journey it doesn't matter.
Speaker #4: We are okay with it. And we want our investors to start in for a very long run. We are honestly not 1% of where we want to be as a company.
Speaker #4: Not even 1%. I'm talking not in terms of market cap or in terms of profitability in terms of creating an impact in the industry.
Speaker #4: And we are wanting to do that more than anything else in the process. If our margins improve in the process we become slightly a bigger company.
Speaker #4: Yes of course we will do that. But we are as a company more focused on the impact we have in the industries that we are present and something that lives beyond my lifetime as well.
Speaker #3: Sure sir. Thank you and best of luck for the future. Thank you.
Speaker #4: Thank you.
Speaker #1: Thank you. The next question is from the line of Yash Gupta and individual investor. Please go ahead.
Speaker #3: Hello sir. मेरी आवाज आ रही है? I'm m audible.
Speaker #4: आ रही है आ रही है.
Speaker #3: Good morning sir. First of all congratulations on great set of numbers. So my question is regarding the paid care business. The business is currently generating around 40 43 crore in revenue.
Speaker #3: What revenue SQL are you targeting for over the next three five years? And what kind of margin provides you?
Speaker #4: Yes. So pet care pet care we are we are doing we are one of the only companies to have neutral circle formulations functional foods therapeutics grooming and also now diagnostics we have we have our India's first center in in Mumbai.
Speaker #4: In worldly we are starting one more in in Malad and we are creating one more center in Vashi. As we speak as we speak.
Speaker #4: So the growth in the pet care industry is going to come from all of these individually as well. We are also launching cat food by the third quarter of this financial year.
Speaker #4: So our around the fourth quarter of this financial year. So that itself we are planning to be a 100 crore sale within three years from launching or within three and a half years from launching our plants that we are manufac we are building right now for increasing functional food capacity that itself we are going to also start OEM for those for other companies as well.
Speaker #4: So that we are looking at a a positive growth in the the numbers. Wagger is also technically part of our free OC ego ecosystem of course it's a separate company but it's in the pet care so if you add that we are looking at a good growth in those numbers as well.
Speaker #4: Our on field penetration is increasing. Our functional foods this this year we are looking at around 18 to 24 crores to sell only functional foods.
Speaker #4: But that will also include what we are doing right now as a product basket. So overall we are looking again at 40 to 50% growth in those numbers for the next three four years.
Speaker #4: We are very small based of 40 45 crores overall with this so growing at 40 50% year on year in pet care is not a big thing at least for the next three years.
Speaker #4: We might have a further spurt once the cat food the revenue start adding once the diagnostics revenue start adding we have also in line certain acquisitions coming in we will be updating our investors.
Speaker #4: We'll be updating the markets and everything for those acquisitions which are coming in which may some are small some are big but they are all fundamental parts of the long term growth story.
Speaker #4: So some exciting stuff is coming in the pet care let's understand what we are doing as a business and why we are doing that.
Speaker #4: I think then derivating those numbers will be quite easy.
Speaker #3: Very good. Thanks.
Speaker #1: Thank you. The next question is from the line of Abhijay from Asia Capital. Please go ahead.
Speaker #5: Hi. Good afternoon. It's my hope I'm audible.
Speaker #4: Yes.
Speaker #5: So congratulations on a good set of numbers. As you have always under promise and over delivered continuing that trend which is hard to see.
Speaker #5: I just want to understand one thing sir in the last call you had mentioned about you know as the company is going through this explosive growth you would want to put in a formal structure in place in terms of finance accounting and slowly you know have an execution team which caters to your CEOs of different divisions so that these are independent divisions each of the business.
Speaker #5: So could you throw some light on that and also I think I missed your comment on the margins that you were saying the margin improvement that you were talking about.
Speaker #5: So could you throw some light on that as well?
Speaker #4: Okay. In terms of the team you have to realize that already every single division and you know this has a separate CEO in place.
Speaker #4: Who have 10 15 years of experience some have 20 years of experience some have 25 years of experience. Our team in pet care India is number one pet nutritionist is also part of our team.
Speaker #4: Our our cat team has people in the industry who are stalwarts so even in our nutrition and our other people who are launched products for various MNCs they not only India but across the world.
Speaker #4: So the team is very strong. We are having a very strong internal team also of our operations our our in terms of finances and in terms of new product development we have a very strong R&D team as well.
Speaker #4: So on all fronts yes we have been building teams and I would proudly say I I that we are one of the lowest attrition rates in the country.
Speaker #4: So my team is with me practically every single core team member I have hired when I joined the company 19 years ago is still with me.
Speaker #4: Every single one. So our team team is good. We are crazy bunch of people and everyone wants to grow. You come come to our office at 9:13 the night you will feel you will you will feel it's 4:00 in the afternoon and the packed house and everyone just is geared up because so many exciting things happening.
Speaker #4: So yes team is in place further strong I would say management will automatically form as a part of the process. We are very well organized compared to where we were 10 years ago.
Speaker #4: Compared to where we were 5 years ago and where we will be in the next 5 to 7 years we will be better organized than what we are now.
Speaker #4: It's a part of the process. So yeah and I would want you to come if you ever get time to hit our office and and meet everyone in person I would love love for you to come and introduce you and you can check their energy levels post meetings.
Speaker #4: Yeah.
Speaker #5: Sure. I'll talk to Kevin and arrange a meeting. So just to your last point on the market.
Speaker #1: Sorry to interrupt.
Speaker #5: You had already been diagnosed.
Speaker #1: Mr. Jain?
Speaker #5: Yes. Sorry. Part of the first question only. But anyway.
Speaker #1: Thank you. Ladies and gentlemen due to time constraints we will take that as the last question for the day and now I would like to hand the conference over to Ms. Sakipanji Yara for closing comments.
Speaker #2: Thank you. Everyone for joining the conference call. Friedun Pharmaceuticals Ltd. If you have any further queries you can write to us at research@kirinadvisors.com. Thank you Friedun sir for your time once again thank you everyone for joining the conference call.
Speaker #2: Good day.
