Warm welcome to Marksans Pharma's Q1 FY '27 post results earnings call hosted by DAM Capital Advisors Limited. On the call today, we have representing Marksans Pharma, Mr.

Mark Saldanha, Founder, Chairman and Managing Director, and Mr. Jitendra Sharma, Chief Financial Officer.

I'll hand over the call to Mark to make the opening comments, and then we'll open the floor for questions from there on. Please go ahead, sir.

Thank you, Nitin. Good afternoon everyone and thank you for joining us for our Q1 FY '27 earning conference call.

We sincerely appreciate your interest and continued support for the company. Q1 FY '27 has been a very strong start to the year for Marksans.

We delivered 841 crores of revenue, up 35.6% year-on-year, with our highest-ever quarterly EBITDA of 213 crores and highest-ever quarterly PAT of 159 crores alongside our cash balance crossing 1,000 crores for the first time. We've been investing in our products, manufacturing capabilities, customer relationships, and international presence for several years now, and we are increasingly seeing these investments translate into growth, profitability, and cash generation.

Europe has been a strategic highlight of the quarter. UK and Europe delivered the highest-ever quarterly revenue of 356 crores, growing 74.7% year-on-year.

Over the last several months in Europe, we have moved from our primary existing channels to building our own front-end presence across key regulated markets. During the quarter, we completed the acquisition of Clinique BV in Netherlands, which contributed approximately 44 crores of revenue in Q1.

Even excluding this contribution, the region grew strongly by 53.1% year-on-year. We then completed the acquisition of ABC Now GmbH Germany, with consolidation commencing from Q2.

Alongside these acquisitions, we have established Marksans Pharma Europe in Ireland and Marksans Pharma GmbH in Germany. Europe is becoming an important new growth market for Marksans, and we remain focused on progressively scaling our presence across the region.

Talking about our other key regions, in North America, we delivered 377 crores of revenue, growing 15.1% year-on-year. This quarter saw a softer demand through the summer months, in line with the normal seasonal pattern.

Price erosion in our RX portfolio remained in single digits, and in the coming quarters, we expect momentum to strengthen. We have also established our presence in Canada with product filings underway.

In Australia and New Zealand, we delivered 88 crores of revenue, up 53.7% year-on-year. This was in line with a normal seasonal pattern following a particularly strong fourth quarter during the Southern Hemisphere winter.

The underlying business remains healthy, and we expect momentum to build as we move through the year. The improvement in the company's profitability is equally encouraging.

The benefits of operating platform we have been building over the last several years are increasingly visible in our profitability. Our focus for the rest of FY '27 is clear: carry this momentum forward, scale across geographies, accelerate new product launches, build out on the European market, and continue improving the profitability and cash generating ability of the business.

We remain disciplined in how we allocate capital and selective about our inorganic opportunities. We remain confident about creating a business that is scalable, resilient, and positioned to deliver sustainable long-term value for all our stakeholders.

With this, I hand it over to Jitendra, who will take you through the financial performance in detail.

Thank you, sir. Good afternoon, everyone.

Let me take you through the financial performance for Q1 FY '27. Operating revenue for Q1 FY '27 stood at ₹840.8 crore, up 35.6% year-on-year from ₹620 crore in Q1 of FY '26.

North America remained our largest market, contributing ₹377 crore, up 15.1% year-on-year, and accounting for approximately 45% of consolidated revenue. UK and Europe delivered ₹356 crore, representing 74.7% year-on-year growth and approximately 42% of consolidated revenue.

This was the highest-ever quarterly revenue for the region. Europe also began contributing meaningfully during the quarter following the acquisition and consolidation of Clinique, while the underlying UK business continued to show strong momentum.

Australia and New Zealand delivered 88 crore rupees, up 53.7% year-on-year. The sequential moderation was in line with the normal seasonal pattern following a particularly strong fourth quarter.

The underlying business remains healthy, and we expect momentum to build as we move through the year. Rest of World contributed ₹20 crore during the quarter.

Gross profit stood at ₹497.3 crore, up 38.9% year-on-year from ₹358.2 crore, while gross margin improved to 59.1% from 57.8%, an expansion of 138 basis points. Sequentially, gross profit increased from ₹465 crore, with gross margin expanding by 478 basis points.

The improvement was supported by favorable product mix, lower cost materials held in the inventory, and favorable foreign exchange. EBITDA stood at ₹213 crores, compared with ₹100.1 crore in Q1 FY '26, representing 112.8% year-on-year growth.

EBITDA margin expanded to 25.3% from 16.1%, an improvement of 919 basis points. Sequentially, EBITDA increased from 195.4 crore, while EBITDA margin expanded by 251 basis points.

The improvement reflects the benefit of higher gross margin together with operating leverage. Profit after tax stood at ₹159.4 crores, compared with 58.2 crore in Q1 FY '26, representing a 173.9% year-on-year increase.

PAT margin improved to 18.4% from 9.3%. Sequentially, PAT increased from 149 crore in Q4 of FY '26, with PAT margin improving from 17.4% to 18.4%.

Moving to cash generation, we generated ₹185 crore of cash from operations during the quarter. After net capex of 33 crore, free cash flow stood at ₹152 crores.

Our working capital cycle improved to approximately 132 days, compared with approximately 159 days in Q1 of FY '26 and 138 days for Q4 of FY '26. R&D spend for the quarter was ₹23.2 crore or 2.8% of consolidated revenue, compared with ₹12.1 crore and 2% in Q1 of FY '26.

We ended the quarter with a cash balance of 1,058 crores, compared with ₹711 crore at the end of Q1 of FY '26, while the net cash stood at ₹1,031 crore. This was achieved despite the payment towards the Clinique acquisition during the quarter.

With that, we would like to open the floor for questions. Thank you.

Thanks for the opportunity, and congratulations on a great performance. My first question was on the line of the Clinique acquisition.

The disclosure suggested that the transaction was done on 1st June and was completed on 17th June. The revenue recognition, can you give some sense how it has been accounted?

For the full year, how do you see both the acquisitions as well as your organic efforts in Europe business panning out for FY '27?

Ahmed, the effective date for the transaction was 1st of April, 2026. We have consolidated the first quarter numbers in our June quarter consolidated financials.

We expect Clinique will do around 150 to 175 crore in terms of the revenue overall for the year.

Sure. Europe geography as a whole with two acquisitions and your organic efforts, how much the delta will be up over and above the Clinique number you guided for?

Yeah. Obviously, we expect to grow from what Clinique has historically done and they had done slightly below €10 million.

We expect to end this year by around about 14 between €14 million to €15 million. That's nearly about 40% above.

We do expect Europe to be somewhere around 180 to 2 yeah, about 180 crores. You can put it as 180 crores.

Sure. Got it.

On the gross margin front, obviously, this was probably the highest gross margins we have reported maybe outside of COVID period to be the highest. How should one think about it in terms of the product mix?

Obviously, you have low-cost inventory, which you have flagged out in your presentation. Some of the high-cost inventory may be being procured as of current moment with higher solvent costs.

How should one think of the gross margins and the pricing we are able to improve, and so on?

Obviously, it's a very fluid situation and you're right. We were sitting on good inventory, which we are depleting over time.

We still have some inventory, but there are obviously other parameters due to the war which is having an impact like freight or some higher costs of raw material coming in. We do believe that as and when this war does end, it will go back to its normal levels relatively very fast.

Far, we are leveraging that inventory that we have. In terms of sustainability of that 25-odd percent—

Gross margin of 59.

Yeah, 59%. I think we should be around 55 55%, 56% gross margin per se.

Sure. The other thing, working capital has come down meaningfully, there will be some sort of inventory unwinding that would have happened, I'm assuming.

Is that the case or is there any other angle to it?

No, that's the case. That's the case.

Okay. Sure.

Lastly, on the US business, can you give some sense how does the order book look, the rest of the season? How do you see the growth accelerations to be?

See, we we do see the order book is still strong, so that's not a problem. We do see contribution in this financial year coming from around the geographies.

It's not even in the first quarter, if you look at it, it's not only US that's performing. It is Europe.

It is, Australia. Every every subsidiary is performing.

This year you will see growth happening from all geographies which will contribute. We do anticipate us I mean we're still very much on our target of hitting 4,000 crores within the next two years.

I think we still stand by it, and obviously, we do expect contribution coming from all our subsidiaries, unlike last year where obviously UK was underperforming and US was accelerating up.

Sure. Just last question on the capital allocation.

Obviously, we are now 1,000 crore plus cash, and the scenario is very different from, say, a few years ago. The balance sheet has changed completely.

Whatever acquisitions we have made, the ticket size is relatively small. How should one think about further capital allocation for current year?

Also, should we making any meaningful, large acquisitions? I'm just thinking in terms of absolute size, the cash we have.

We are exploring those possibilities. Obviously, for us, Europe has just begun.

We've just done relatively smaller target deals. We do plan to expand within Europe as a geography.

We are actively looking at other acquisitions. Nothing concrete or no pen to paper, but we do believe the resources and the money sitting on our balance sheet will fuel our growth in terms of both organic and inorganic strategies that we plan to pursue.

Sure.

Thank you so much and all the best.

Thank you.

Hi. Am I audible?

Yes, you are.

Hi, sir. Congratulations on a great set of numbers first of all.

I have a couple of questions. We have clocked around 25% on the bottom line in quarter one.

Also we have guided for FY '27 revenue growth of 15% to 20% and 20% to 21% EBITDA margin. Is there any plan to revise this on the upward side or how should we look at it?

No, I think we'll stick with that plan because of the volatility that you see, the geopolitical scenarios that you see prevailing surrounding us and pretty much all countries. We do foresee that with the continuance of this geopolitical uncertainties, I think what we projected historically or before, we stand by that.

Okay. Next question is for this quarter our UK and Europe segment grow around 74% YoY and 15% quarter-on-quarter.

How sustainable growth we can assume in these two markets?

I think we'll be able to sustain it.

Okay. You will be able to sustain at around 75% YoY basis and 15% Q-o-Q.

Okay. There was one more question.

I just wanted to know the timeline for Ireland and Germany entities to start generating meaningful revenue. Is there any specific Yeah.

Germany, we expect some revenue to be generated soon, maybe early third quarter. We do expect better revenue to be generated from Germany.

Ireland may take some time because product registrations, it's early formation of a company, we need wholesale license, we need distribution license, and we need product licenses. That all registration is happening, but we are hopeful for next year to see some revenue in the next financial year, not this year.

Germany will see revenue this year in the next quarter, and Netherlands is already performing. I think UK and Europe by itself will show decent growth.

Okay.

Okay. Sir, what about our Rest of the World segment?

Like in the Middle East also we have one subsidiary. How we are looking to grow the Rest of the World segment regions?

We have Middle East. We have Rest of the World means other markets besides the Western markets.

Obviously, the other markets besides the Western markets are struggling a bit because of the war scenarios, because of vessels unable to pass and the transportation becoming one of the biggest hurdles in those regions. Technically, but to our good fortune, they don't contribute a lot.

These are challenging times for those markets.

Okay. Okay.

Thank you. Thank you so much for your answers, sir.

Wish you all the best.

Thank you.

Thank you.

Hi. My first question alludes to a slide in your presentation which says that you want to become a top global consumer healthcare company by 2030.

What will it take for you to reach there? Where you are in?

Sorry, Mihir, I didn't get you very clearly. Could you repeat that?

Yeah. On slide 38 of the presentation which is growth roadmap, strategic vision FY 2030, you alluded that you want to become a top global consumer healthcare company by 2030.

What are the things which you need to do which are not there currently to get there? What will it take for you to reach?

We are working in that direction. This is all about creating brands.

Consumer, when you talk of consumer health, we are looking at OTC. We look at brands.

We are looking at expanding our portfolio where that is concerned. A lot of work will go into that.

We will be pursuing that. We would have to invest some resources also accordingly to that.

Nevertheless, I think we are confident of moving in that direction.

Got it. My second one is more on the regulatory side.

You have three US FDA plants globally. When do you expect the next US FDA inspection to kind of take place?

Because large chunk of revenues comes from the US and your three locations. When do you expect the next US FDA inspection to kind of take place?

There is no definite timelines as and such because they can come any moment. Although one of our plants was recently audited less than 12 months back, but again, they can come anytime.

Based on our filings, based on so many filings that we are doing, they can visit anytime, it's difficult to put a timeline on that.

Okay. Okay.

Thank you and all the best.

Hello. Am I audible?

Yes, you are.

Yeah. Congratulations, first of all, on a great set of numbers.

Completely unexpected and excellent numbers. Just wanted to understand, in your last year con-call, you mentioned that Q1 is generally a weak quarter.

Does that mean that we have more stronger quarters coming in for the Q2, Q3?

Yes. From a revenue standpoint of view, the answer is yes.

I think from an EBITDA point of view, we will hit our expected margins that we have presented to that level, yes. Revenue definitely, the Q2 will be better than the Q1, and Q3 will be probably the strongest.

Right. Just wanted to understand also with your European acquisitions— Sorry.

Are you saying something?

No, no, no. I'm waiting for you.

Okay. I'm saying about the European acquisitions.

Now you've said we've done two in Germany, one in Netherlands, one in Ireland. Do you think for covering the entire Europe, will we need more acquisitions or these will be enough for the start?

In acquisitions, we have done only two. One is in Netherlands and one is in Germany.

I think these will give us a good launching pad into these countries. If you look at our history, we have always grown on what we've acquired, and we've grown very well on what we acquired.

Yes, to answer your question, we would need more acquisitions, and that's where we have a decent corpus with us to close any inorganic strategies that come our way, obviously making sure that it is worth the valuation. We do plan to expand countries within Europe.

That said and done, M&As are unpredictable and timelines are not fixed.

Right. What is your US strategy, especially after Mr.

Trump has mentioned that you'll have 200% duty after 2 years. What is your long-term US strategy?

Are we going to ramp up our production in US? How are we going about this?

That's always a possibility. There are different possibilities, but I think we have to cross that bridge when we arrive at it.

I would not put much weightage on what he says because it may change pretty much within 2 days or 3 days or whatever. I think we'll wait and watch, and 2 years is a long period of time for anyone to preempt a change happening right now, especially the way the US is shaping up.

I think a lot of things may change, and again, depends on elections, depends on political scenarios prevailing in that country. We have to just see how things unfold.

That possibility of ramping up is always there with us, and we always keep that as an option.

Right. What is this US strategy as in I just wanted to understand since we're having so many acquisitions in Europe, is this a long-term strategy to maybe if there is any problem in US, then we have our European market also?

Is that what is there on our mind, or this is just a general acquisitions-led growth?

No, we had always mentioned in our previous calls that we would like to expand our geographies. We historically focus on a market, we consolidate, we grow the market.

Once the growth is happening and it's on a autopilot mode, we then look at expanding our footprints in other geographies. This year we had earmarked for Europe by itself.

Coincidentally, the geopolitical scenarios are different or are happening parallelly, but we had earmarked this year for expanding our, like I said, footprints into different geographies, and Europe was identified as a market with potential, and that's where we went into Europe. Our US is still our important market.

It's still giving us decent revenues and it's still a potential market for growth.

Right. All the very best, Mark, and congratulations again on an excellent set of numbers.

Thank you.

Hi. Good evening, everyone, and thanks for the opportunity.

With respect to the gross margins, I think you have posted the highest-ever gross margins this quarter. Is there scope to kind of push this higher?

No.

Everyone would love that, and we always try to be innovative and approach situation differently. No, I don't think that has been unrealistic.

I think, like I mentioned, 55 to 56 range is more comfortable looking at a geopolitical scenarios that are there with the war, with the crude, with everything, with transportation, and everything that goes on.

Okay. Would you be able to share what volume of your sales was manufactured in India?

Is it very different from the other quarters or previous years?

I think we do about 65% to 70%, 70% being on the higher side, but 65% to 70% coming from India.

Okay. Kind of the backward integration plans are on shelves, right?

You're not pursuing actively there, right?

No, we are not pursuing it actively, but we have developed some IPs related to DMFs, but exploring the CRAMS business model, but we are not pursuing it actively because again of what's happening around.

Got it. Just if you could give an outlook with respect to which geography that you think is likely to kind of do better in the near term for you?

I think, unlike our last year, this time all our markets and all the geographies that we are in will do fairly well. Each of our subsidiaries will contribute to helping us achieve our objectives and goals that we've set out.

Okay.

Any new geographies that you're looking to add?

Europe is a continent by itself. It's a big continent and has a cluster of different countries.

We have just started it. That does not mean that we have conquered everything out there or created anything substantial.

We've got a long way to go in Europe, and we plan to expand that effort in the coming months and whatever time it takes us to become a prominent player in Europe like how we've done in US and other markets.

Are you planning anything in terms of recently Zydus Wellness acquired it's more of an e-commerce platform for OTC drugs. Anything on those lines?

Would you be considering? No.

No,

no.

Got it.

Thank you.

Hi. Good evening.

Hope I'm audible.

Yes, you are.

My first question is on capital allocation. I'm on slide 28, and I think the ROE and ROCEs have obviously fallen in the last few years.

Close to about we have 1,050 crores, 1,060 crores of cash. Most of it, I'm seeing in the annual report, is sitting in FDs and in current accounts, which probably is earning us 4% to 5% post-tax against an operating ROCE of 20%.

I just want to understand whether the management is looking at efficiently utilizing that cash reserve that they have. Obviously, you need cash for acquisitions and organic growth.

Can the management plan about better usage of cash reserve, which is not an immediate M&A need? For example, index investing is something that can be explored, which gives us a yield of 9% to 10% relatively risk-free and yeah, helps improve this drag on ROCE, which has been happening for quite a while now.

Just wanted to understand your thoughts around that.

We don't take that factoring or risk. We are not into that.

We make sure it's safe. Yes, our main aim is to use those funds to drive inorganic strategies, which basically will grow the company and its revenue generation.

In those acquisition terms, obviously we try to be conservative to make sure we get return on investments relatively fast and lucrative, like you've seen our Netherlands deal. You'll probably see maybe in the next 6 months our Germany deal how it has outplayed versus what we've invested.

We look at returns coming from there at a faster pace than trying to go into instruments which may have some risk factors. We are averse with taking risk where that is concerned because those are beyond our control.

All right. Second question is on the sustainable EBITDA margins.

Obviously, this quarter has been a blow out in terms of EBITDA and previous quarters

Sorry, you are not audible. Could you repeat that?

like the gross margin 56% range. Your other expenses are roughly about 33% to 34-odd percent of sales.

I think that would give us an EBITDA of about 21% to 22% for this year. Is that understanding correct, or do you see that 25% EBITDA percentage rationalizing

this year? For this year, I think Yeah, end of the year, 21% to 22% is achievable, yes.

All right. Okay.

Sure.

Thank you so much. I hope eventually you can start utilizing some part of that cash reserve toward a better-yield product, which is much safer, like an index investing or something.

For future you can look at it, at least start with some portion just to improve yield. Companies across the world are doing it.

Mr. Warren Buffett is doing it.

Pretty sure that the risk are manageable at a smaller scale. That's it.

Thank you.

All right. Thank you.

Hi. Thank you for the opportunity.

How much of the growth is organic in UK and Europe? What exactly is the 44 crore from Clinique that we received?

No, that's the revenue. 44 crore in Clinique is the revenue.

We have not received anything. It's

the revenue.

The growth from UK is all organic only. We have not done any inorganic in UK per se.

Excluding the Clinique number, our UK business, we have achieved growth of over 50% on a year-on-year basis during the quarter.

That is all organic.

Noted. What do they do, and similarly, if you can brief on what ABC Now does?

They are into the generic space pretty much like all our subsidiaries. Clinique is more tilted towards Rx, while ABC Now has got both Rx as well as OTC portfolio.

They are into the generic space more or less like all our subsidiaries.

Just a couple of questions more. How do you see Europe region shaping up in the next 3 to 5 years, and are you looking at more acquisitions?

Yes. Obviously, Europe is a cluster of many countries, and right now we are present in only two countries.

That's in Germany and Netherlands. We do plan to expand the geographies in Europe, and most of them will come through acquisitions or inorganic strategies.

In the next 3 to 5 years, let's say more or less within 5 years, we are hoping that geography can do about 1,000-odd crores.

Got it. Sir, lastly, if I may, how is Goa Unit 2 progressing and what is our capacity there?

Goa unit is progressing. Oh yeah, the Teva facility is progressing.

We had projected about moving towards the 80 crore revenue generation from that plant. We are right now at 50-plus crores.

I think we are pretty much at 65 60% to 65% out there.

Okay. Thank you so much, sir.

Thank you.

Yeah. Hi, team.

Congrats on a very strong set. Sir, I just want to understand that on the manufacturing side also we've called out that we may run out of manufacturing capacity.

Any incremental color there in terms of assets that you're looking at, either green or brown?

We are looking at couple of targets. It's too early to mention whether it will go as per plan, but I think we have a year to two years to work towards achieving this objective.

If we have to achieve our 3 to 5 year plan, yes, we are aware that we may need manufacturing capabilities, probably another unit in India. We are working in that direction, but nothing concrete as of now because it's easier said than done.

We need to make sure that we get it at the price we want. That makes it a bit more interesting and challenging.

mark, see there's been a certain benefit of having two units relatively close by in Goa. Is there anything on your mind with regards to a specific location or are you open to going to a different state?

Just want to understand a little more on your flexibility on the geography of—

There is no location. We don't mind expanding and going to another state.

Goa strategically unfolded the way it happened. That's said and done, if there's something in a different state, we will obviously look at it at its merits and take a call at that time.

As long as objectives get achieved, we are okay in exploring different states.

Cool. Thanks.

All the best.

Thank you.

Mark. Just quickly on your R&D efforts, if you can just throw some light on how the R&D efforts have been progressing over the last few quarters and what are the major objectives from the R&D program that you're pursuing going forward?

Nitin, that's a good question. We're putting a lot of stress on R&D, on product development, on the different delivery dosage forms, which are a little more expensive in terms of getting it right.

A lot of work in the background is happening on differentiating our product basket. We've always been doing that, but as we grow bigger, we have better resources to plow into that area.

That's where you have seen a bit of increase. That said and done, as and when new geographies come into play, then new product portfolio comes into play, and our product basket is increasing in every geography.

There's a lot of work being done in certain countries. We have taken this objective in the next 2 to 3 years to literally double our portfolio in every country that we are in.

We are working hard towards achieving that, and that's what's driving our cost on R&D right now.

In the US, for now I think about 70%, 75% of our business is OTC, correct me if I'm wrong on that. UK is far smaller amount, and presumably the way we're looking to expand in Europe, is it fair to assume that a lot of European growth will be again on prescription products or is going to be pretty high what kind of percentage of OTC do you see playing out in Europe and UK going forward?

UK is equally distributed. We have about 50% maybe 50-50% or maybe 45-55%, 55 in Rx and 45 in OTC.

It's quite equally distributed. In Europe, it's going to be tilting more towards Rx, maybe 80% or 85% Rx and 15% OTC.

That's the mix, because Europe is prima facie more of a prescription market than other geographies that we are into.

Okay. In the US, on the OTC side, any changes that you've seen in the market dynamics in terms of the competitive intensity, number of players coming in, new players coming in or players dropping out?

Any incremental changes that you've seen in the market over the last few quarters?

No, we don't see anything. Obviously, we definitely see struggles happening because of the war and the geopolitical scenarios that are revolving especially around that country.

We see the fuel prices going up, consumers struggle to affordability on filling their gas tanks. In terms of market dynamics, we don't see much change where that is concerned, especially on competition whether they are coming in or going out.

We do see some of the big players are struggling a bit, but that is always good news for us. Right.

Lastly, on the US, how do you see our US sort of geography shaping both from a qualitative and a quantitative perspective over the next 3-5 years?

Obviously, our immediate outlook we don't talk about $200 million anymore, but we are now working towards a 300 $300 million and then we'll probably look at a $400 million if you have to look at a horizon of maybe 5 years. I think our immediate objective is to first reach our next benchmark of $300 million in the US.

The composition of the business will still continue to be driven by OTC in the US?

It is OTC driven, but our Rx is seeing a bit of better traction also. Maybe historically, we were 90% probably 95% OTC and 5% Rx.

That may change to 85-15. I don't know.

OTC will still be our strength out there.

Lastly, on this one, now with the scale that we've got, probably we're there in most of the relevant OTC customers in the US. How is that scale that you already have and our older relationships with some of these customers really helping us in building the business now?

It is. As and when opportunities do come, we are the preferred choice of partners that they look at.

Our product portfolio in each of those customers are increasing. As and when if you're supplying 10 items and tomorrow there is a potential of increasing it by another 10 more items to those customers, so that's where the growth is generated from there.

Like I said, we are basically ensuring that US growth is also driven and equal importance is given on strategic product portfolios where we believe there's a gap and where we can increase our market share relatively fast. Yes, it has to go through all the ANDA approval process and everything of that stuff.

Thank you so much.

Thank you.

Hi, Mark. Thanks for taking my question.

I just want to go back to the question where one of the participants mentioned around the usage of cash component. I see we are having 1,000 crores cash and the top line is 3,000 crores, so that number sounds very conservative.

I wanted to know is there anything bigger acquisitions or inorganic growth in the next one-year horizon or because smaller acquisitions is still happening. At the same time, we will be generating more cash flows as we go forward.

See,

yeah, anything is possible, right? If we are sitting on a corpus, yes, it can be a decent-size ticket deal.

In certain markets, we explore different strategies, but if tomorrow we acquire something in India, we'll have to pay a bigger valuation. Not that we have anything in mind, but if we have something, you'd have to pay a bigger valuation.

All of a sudden, 200, 300, 400 crores will go into that acquisition and suddenly you'll say, what happened to all the money? Where did it go?

That money will basically fuel our growth strategy. We are quite optimistic.

Like I mentioned in my previous calls that this is the year that we would be pursuing our inorganic strategy. Over the last couple of years, we've been focusing and pushing and integrating and ensuring that our organic strategy takes shape.

This year we are working towards the next leap or the next growth strategy we have in place for the company, which will basically evolve the company to a different level altogether.

That's good to know, Mark. Just again, to add to that, I think we have reached to a level, our platform is there.

I'm sure we are very confident on the management team. But 15% to 20% growth seems to be very conservative where we are right now.

I hope we kind of try to achieve better, 20% to 25% growth should be the new normal given that where we are at this moment. Just being a little greedy, but basically we have a great management team.

You, yourself, have been doing really great for the company as well. I'm just hoping that we kind of be more aspirational.

Oh,

I'm sure. In my last call, we spoke about doubling our revenue.

That itself is how many companies do you know that talk about doubling their revenue, right? When we did 3,000 crores, we are now giving visibility of doubling our revenue within the next 5 years.

We still have to work towards that, and we are quite optimistic we will be out there.

All right. Thank you, Mark.

Thank you.

Thank you, everyone, for spending your valuable time on this call, and have a great evening and be safe. Thank you.