On behalf of Systematix Institutional Equities, I welcome you to the Q1 FY27 earnings call of Vimta Labs. We thank the Vimta management for giving us an opportunity to host the call.

We have with us the senior management of the company represented by Ms. Harita Vasireddi, Managing Director; Mr.

Satya Sreenivas Neerukonda, Executive Director; Mr. Siva Rama Krishna, Chief Financial Officer; and Ms.

Sujani Vasireddi, Company Secretary. I now hand over the call to the company management for opening remarks.

Thank you, Vishal. Good afternoon everyone and a warm welcome to our Q1 FY27 earnings call of Vimta Labs Limited.

Please note that the investor presentation and the financial results are available on the company's website and stock exchanges. Also, anything said on this call which reflects our outlook for the future or which could be construed as a forward-looking statement must be reviewed in conjunction with the risks that the company faces.

This conference call is being recorded, and the transcript along with the audio of the same will be made available on the website of the company as well as on the stock exchanges. Please also know that the audio of the conference call is the copyright material of Vimta Labs Limited and cannot be copied, rebroadcasted, or attributed in the press or media without specific and written consent of the company.

From the management, we have with us Ms. Harita Vasireddi, Managing Director; Mr.

Satya Sreenivas Neerukonda, Executive Director; Mr. Siva Rama Krishna, myself, CFO; Ms.

Sujani Vasireddi, Company Secretary. Now I request Ms.

Harita Vasireddi, Managing Director of Vimta Labs Limited, to provide you with the updates for the quarter ended 30th June 2026. Thank you, and over to you, ma'am.

Thank you, Siva. Good evening everyone.

Thank you for joining us today. I'm pleased to report that Vimta delivered a resilient and steady performance in the first quarter of FY27.

Total income stood at 1,129 million rupees, representing year-on-year growth of 13.7%. This is despite a mixed demand environment across certain services.

While revenues remained broadly stable on a sequential basis, the quarter reaffirmed the strength, diversity, and adaptability of our service portfolio, enabling us to navigate the near-term headwinds while sustaining healthy profitability. Our pharma contact research and testing services delivered a consistent performance during the quarter.

Revenue remained broadly stable on a quarter-on-quarter basis. However, the divisions recorded strong year-on-year growth supported by improved enquiry inflow and sustained customer engagement.

Our clinical research operations, which faced challenges in the previous fiscal year, have begun to show encouraging signs of recovery with healthy enquiries and orders inflows during the quarter. This provides a positive foundation for improved performance in the coming quarters.

Further, the environment division has been integrated with the food division given its relative scale within the overall revenue mix to enable more efficient management and operation alignment. Consequently, the environment business will no longer be discussed as a separate division going forward.

The food testing business witnessed a decline in import and export-related sample receipts primarily due to ongoing global challenges. The business has responded proactively by sharpening its focus on domestic market, thereby mitigating the impact to a certain extent.

The electronics and electrical testing business remained stable during the quarter with the manpower-related challenges faced earlier now addressed. With intensified market outreach, we are encouraged by the opportunities emerging in this market.

India's continued emphasis on electronics manufacturing, quality certification, defense indigenization, and infrastructure development creates a favorable long-term environment for testing and certification services. In addition, the 15.19% year-on-year increase in India's FY26-27 defense budget allocation is expected to support higher demand for testing and qualification services for defense electronics and related systems, further strengthening the growth outlook for our electronics and electrical testing business.

On the demand front, enquiry levels continue to improve across both domestic and international markets. We are also witnessing an increase in the size and complexity of opportunities under evaluation, reflecting Vimta's growing relevance among customers and increasing preference for specialized testing and research partners.

Utilization levels remain healthy across major service areas. The infrastructure we have built over the years continues to be deployed effectively, while our disciplined approach to capacity additions support optimal capital efficiency and sustainable growth.

A milestone during the quarter was the progress achieved in our biologics initiative. We successfully secured our first order for biologics services and operationalized the facility, marking an important step in expanding our capabilities in high-growth life sciences segments.

From a profitability standpoint, operating margins moderated on a quarter-on-quarter basis in line with expectations, largely due to higher facility-related expenses, the impact of new labor law, and appreciation of the rupee. Despite these factors, margins improved on a year-on-year basis, and our EBITDA margins continue to remain significantly above industry benchmarks.

This reflects the structural strength of our business model, the depth of our operating discipline, and our continued focus on efficiency and execution excellence. Looking ahead, we remain confident about the medium-to-long-term opportunities across our service portfolio.

Positive enquiry trends, healthy demand visibility, and deeper customer engagement across markets reinforce our confidence in the growth prospects of the business. At the same time, we remain firmly committed to prudent capital allocation, strong governance, regulatory compliance, and industry-leading quality standards.

In conclusion, despite near-term softness in select segments, the quarter underscored the resilience of our diversified business model, the improvement in demand conditions, and the strong foundation we have built to deliver sustainable long-term growth. With that, I would now like to hand over the call to Mr.

Siva, who will take you through the financial performance for the quarter.

Thank you, Ms. Harita.

A very good evening to everyone. Thank you for joining the Q1 FY27 earnings call.

I will now begin by presenting an overview of our financial performance for the quarter ended June 30th, 2026. Following that, we'll open the session for questions.

I'll start with the financial highlights for the quarter. Total income for Q1 FY27 stood at 1,129 million rupees as compared to 993 million rupees in Q1 FY26, up by 13.7% year-on-year.

EBITDA stood at Rs 411 million in Q1 FY27 as compared to Rs 354 million in Q1 FY26, up of 16% year-on-year. EBITDA margin for the quarter stood at 36.4%.

PAT in Q1 '27 stood at Rs 210 million as compared to Rs 189 million in Q1 FY26, a growth of 11.4% year-on-year. PAT margins for the quarter stood at 18.6 million.

On the balance sheet side, we continue to have a net debt-free balance sheet with cash and cash equivalents of Rs 628.2 million. Turning to our investment plans, we have slated a budget of approximately 80 crores of capex spend for FY27 to primarily focus on strengthening our analytical capabilities and expanding select service offerings.

However, I'd like to emphasize that our capital allocation philosophy remains highly disciplined. Planned investments will be phased based on business visibility, customer demand, and project-level requirements.

With that, we can now open the floor for Q&A. Thank you.

Hi, good afternoon. I wanted to ask that last quarter we decided that goal for this year for revenue will be around 500 crores.

Wanted to ask if we are on track for that. Also second question is that last quarter our utilization levels was about 38%.

Wanted to understand what is the number this quarter for the same.

Yes, we are on track with respect to our growth momentum that we have built during the last few years. We are confident that the same momentum can be maintained in this year as well, barring the impacts that the global challenges in the Middle East that everybody is facing.

Except for that, I think everywhere else we see that there are very good tailwinds in the industries or markets that we're operating in. Coming to the second question of yours, can you please elaborate which particular utilization are you referring to?

Ma'am, the new facilities that we had was quoted about 38% utilization.

Maybe there's some confusion on that number. I wouldn't have quoted that number.

For us, I would like to reiterate for anybody who's joining us for the first time here that Vimta Labs defines its capacity three-dimensionally. One is the lab infrastructure, the space, the building, etc.

The second one is the equipment, and third one is people. People and equipment we add as and when needed.

Infrastructure is built for slightly medium-term. Therefore, we wouldn't really define capacities as percentages at any point of time, especially when it comes to new capacity that we have created in terms of building.

Sure. Okay.

Thank you, ma'am.

Hello. Am I audible?

Yeah. My first question is on our biologics vertical.

You mentioned in your opening remarks that we have already secured our first order in that new vertical. Could you throw some light on this customer and the nature or the size of the order?

That is highly confidential. We are not permitted to do that because of the agreements that we sign with the customer.

Okay. Any idea on the size part of it?

Or maybe if you can tell us from which country is this customer?

This is domestic.

Domestic customer. Okay.

Any idea on the size part of it?

I will not be able to disclose that. Okay.

Okay. Fair enough.

As investors, what kind of timeline should we keep in mind particularly for this new biologics segment, let's say, in terms of client onboarding and actual commercial revenue coming in?

The commercialization has begun already in Q1. The client is onboarded in Q1.

Right. I understand that.

We were in a discussions with few other clients as well. My question is more from that part.

Can you repeat the question, please? Yeah.

In the last quarter when we spoke, you were in discussions with a few clients, and I understand that one of those clients have been converted. My question is on the conversion of the rest of the clients.

What is the timeline that we as investors can keep in mind?

Difficult to answer that question because the conversion depends on the stage at which their project is.

Okay. Okay.

No problem. Thank you.

Hello. Am I audible?

Yes. Thank you so much for the opportunity.

Couple of questions. Firstly, you mentioned for our operating margins, we saw some impact due to our facility-related expense and in general the raw material pressure.

Do we see these margins going down further or if this level is something we can sustain going ahead? Or do we see pressure going ahead as well?

We expect that the margins will not go down further because we are expecting the business to grow in the coming quarters.

Okay. What would be our contribution for export revenue this quarter?

About 40%.

Okay. Just on your pipeline, you mentioned you're seeing a healthy pipeline both in terms of the domestic and the international market.

Could you just elaborate a bit more on which key geographies are you seeing the most traction in?

We are seeing good traction both overseas and domestically. In overseas market, particularly the US market.

Which segment are we mainly looking at for these orders?

For us overseas is on pharma services.

Okay. This food segment you mentioned we saw a decline this quarter because of the geopolitical challenge.

What will be our strategy for this division? How are we planning to grow this for this year?

The strategy was fine-tuned last year itself wherein we decided we will put more energies and efforts into gaining progress in the domestic market. These efforts began in the last quarter itself, and actually the last quarter of the previous year.

We see good results there, and we are able to offset the challenges faced by the decline in import-export-related samples through these efforts. Going forward, we will continue these efforts, and meanwhile, hopefully the global situations will also improve.

Okay. Fair enough.

You mentioned a capex of 80 Cr for FY27. Could you elaborate a bit more on which segment is this capex for, when it will come online, just a bit more color on that?

The capex that we have taken is very typical that we do every year. I think only a portion of it is remaining for the biologics CRAD that we have set up.

That is around 10 10 crore rupees. The rest 70 is for routine operations for the various business units that we have.

Only 10 10 Cr is remaining for the biologics, right?

Yes.

Yes. Okay.

That is it from my side. Thank you.

Hi, ma'am. Thank you for taking my question.

I actually have two questions, one on capex and the other on customers. On the first question with respect to capex, I just want to understand that we are outlining 80 Cr of capex guidance for FY27, and we have already committed around 18 Cr as per the Q1 investor presentation.

Is it right to assume that we will be committing 62 crores of capex in the remaining three quarters?

I'll answer that question. See, Yuvraj, what you have seen in the presentation, 18 crores is the outflow, which is mentioned in the presentation.

Having said that, yes, our commitments for the current year will be 80 crores, including the 10 crores for biologics.

Understood. At the current level of gross block that we have, how much top line can it support?

See...

I will answer that. I think we are looking at maintaining or even bettering our growth rates, right?

We think that aspiring to that, the facilities that we have created in the last couple of years, we will be able to be good with that for over a period of at least next 4, 5 years, okay? Also, the capex investment that we have every year, that will continue.

Typically, we tend to use the depreciation amount of the last fiscal for the current year capex. That will continue.

Ma'am. My second question is on customer concentration.

Would you be able to give us some color on what is the contribution of top five customers and top 10 customers? See,

that keeps fluctuating quarter to quarter. Sometimes the shift is maybe after couple of quarters because we do projects and projects come.

Certain customers are there in a particular quarter or in a particular year and may not be there in the next quarter or year. It's not really relevant.

What is important is our retention rates of the customers. Our retention rates are upwards of 90%.

It's a very healthy retention rate.

Okay. Thank you, ma'am.

That's all from me.

All right, yeah. You just mentioned the retention rate is at 90%.

This include the incremental business from the existing clients as well?

Yes. When I say retention rate, I'm only talking the count, I'm not talking the value of business.

All right, okay. Not based on the value, only based on the count, right?

Value will vary depending on what projects we do for each one of them.

All right, great. You also mentioned that almost 90% of the pharmaceutical companies that you are currently dealing with, because of the addition of this biologics facility, does it give any kind of a cross-selling opportunity?

Absolutely, and that's one of the main reasons we backward integrated into that service.

All right, okay. Great.

Thank you.

Hello. Hello?

Good afternoon, ma'am. I had one one question.

Could you help us understand your strategy around emerging therapeutic areas such as GLP-1 drugs, biosimilars, or cell and gene therapy? Are you into any of the emerging areas which are into the GLP drugs or biosimilars?

Yes, we are, but see, shall we say, we are product agnostic. Whatever the current industry trends are, we have the scientific capabilities to address the requirements of those particular products that are trending in the industry.

Okay. Ma'am, one more thing, what is the current capacity utilization of your laboratory?

I answered this, I will repeat. Capacities are measured in three aspects for us.

Equipment and people we add as we need. There's not really a lot of spare capacity sitting anywhere unless it's a new segment that we are building or a new service that we are building.

Infrastructure-wise, we have created the infrastructure to help us in our growth for at least when we created it, it was at least a 7-year plan, okay, and we created this 2 years ago. With that mathematics in place, we are good for the rest of the upcoming 4, 5 years.

What percentage of it is being utilized approximately?

You mean the infrastructure?

Yeah.

Infrastructure, see, we have built about 200,000 square feet. In that, I think we have occupied at least 60%, I would say, no, approximately.

Ma'am. Yeah.

Thank you. That's it.

Thank you for taking my question. Good afternoon, madam.

I have a few questions. How do you see the business in the next two quarters?

As I mentioned in my opening remarks, the enquiry trend is quite positive quarter-on-quarter. With that positive enquiry trend, we are quite hopeful that the upcoming quarters will be better.

Okay. Is the demand for pharma or food testing still strong, madam?

Pharma strong. Food, the import and exports have been impacted because of the war situation because the cost of import and export has gone up for the businesses.

I think that is taking its toll on the whole trade between India and other countries with respect to food commodities. Pharma is okay.

Now actually the tailwinds are pretty strong in pharma for India and also globally.

Okay. When we expect a meaningful contribution from US business, madam?

Can you repeat, please, a little more louder?

When can we expect meaningful contribution from US business?

Meaningful contribution from US business?

Yes, madam.

I think it's quite meaningful right now at 40% overseas exports. Out of the whole 40% overseas, US is the largest.

Thank you. Thanks a lot.

Hi. Thanks for the opportunity.

In your response to the previous participant, you said you have been seeing certain tailwinds in the pharma business. Can you share some color as to what these tailwinds are?

This also I think I've shared in some of my earlier calls. This shift we have been seeing for more than a year now.

The Indian pharmaceutical industry is moving away from simple small molecules. Their pipelines are now busy with more complex kind of molecules.

Usually complex molecules is a positive sign for CROs because outsourcing tends to be more because the knowledge of the CROs is quite helpful for the companies in tackling their complex molecules. That is one thing.

The other thing is the global R&D pipelines. Now there has been a continuous shift from small molecules to large molecules.

What I read recently is that 40% of the global R&D pipelines are now large molecule pipelines. India has realized that that's a good future product portfolio to have, and I'm sure they want a piece of this pie as well.

We see Indian companies also aspiring for those kind of products, and we see the planning and R&D work beginning in that aspect. In addition to that, if you see the number of biotech companies that have proliferated in India over the last decade, I think they have more than doubled.

When there is such a proliferation, big, small, micro-sized companies, usually the R&D pipelines are also growing. All these things are very positive tailwinds for a CRO, I would say.

Okay. Ma'am, with respect to the biosimilar analytical business for the biosimilar filings, does that come into your pharma analytics business?

Yes, we support even biosimilars.

Okay. The new vertical that you've set up on the biosimilar front, that's more to do with the small-scale manufacturing and not with the filings basically.

The filings would be part of the pharma analyticals business.

It would start here, product development and process development is what we offer under CRAD. The whole whatever filing business is there, it would start from this process, and then we also have capabilities going forward, which is to help on the analytical characterization side or bioassay side, or if the molecule goes into clinical phase, then we also support on bioanalytical including the trial.

Okay. Would you kind of have a number as to how many ANDA filings or biosimilar filings put together you would be supporting in any given year?

Is there a trend to that, is that number growing, or maybe the number is not growing,

but

the complexity is growing?

No, I don't have that number. I'll try to get it the next time if possible.

Okay. Just on another clarification on the new biologics vertical, that does both API development and formulation development or that does only API manufacturing?

No, we do drug substance and drug product. We have capabilities to do both.

Okay. You do both things for the clients or they can ask either of them?

Yes.

Okay. That's it.

I'll join back the queue.

Hello, am I audible?

My first question is, you mentioned that you are entering in CDMO and you got a new contract customer. Can I get to know that by what timeline that segment will be a meaningful contributor to our overall bottom line, and what are the margin expectation for that contract?

My second question is that I don't know whether this question was asked or not, but can we get some area or segment from which you bagged this order or by which domestic entity you bagged this order or contract, and for how much time frame this order is for, means for 1 year, 2 year, like that?

Coming to your first question on when it will be a significant contributor to the top line and margin, not this year, but hopefully from the third year onwards, we expect it to be contributing significantly to the top line and margin. I'm sorry, but we cannot share any details on the project that we have started working on.

No, that is not possible.

Can I get any ballpark percentage how much it will be of our top line, any ballpark percentage if you can give us?

No, that will be very difficult for me to put a number on that because we've not yet talked about numbers for those years,

right? Got it.

Thanks.

Hi, good afternoon. Thank you for this opportunity.

Ma'am, you touched upon a part of the acquisition in one of your previous concalls. I happened to look at one of your global peers which was Eurofins.

They have gone through dozens of acquisitions. Judging by your debt-free balance sheet, can you just talk about by what time frame would you be looking to acquire some company that could grow certain revenue from it, whether domestic or international?

We are not involved actively in any acquisition or anything of that nature right now. As we get into it, I am sure I'll communicate that to the investor group.

As of now, there is nothing active there.

Sure. Thank you, ma'am.

Madam, am I audible?

Actually, my question is on electrical and electronics testing. Now are we looking forward to expand our facilities in other states, like to have better access of customers for electronic and electrical testing?

Second, to expand in this segment, are we looking for any inorganic growth by way of acquisitions?

There is no plan to expand into another state for this year. If some opportunities come our way that are interesting, we might take this call in the future.

I can't really commit to anything about the future right now. Inorganic growth opportunities also, if we are always open to these opportunities, and if somethings come our way, then we will of course evaluate and do the due communications.

My second question is on our numbers. Now, first quarter is flat in terms of top line and bottom line.

As our target is to reach 500 crores on annual basis, are we confident that we will have a Q-on-Q growth now on for at least next three, four quarters? Even if we may be short by 20 crores or 30 crores for 500 crores.

Vimta does not give any forward projections on its numbers. I can confidently say that the company's growth rate is what we will try to maintain and even better it this year and the upcoming years.

That's our endeavor, and I think so far our success rate has been good, and we see no reason why it won't continue. No,

actually, what we are seeing is, after growth in one quarter, the next quarter is normally flat. I'm not asking for the forward-looking numbers.

I just want to know that are you confident we will grow Q-on-Q basis for next few quarters in terms of top line and bottom line?

We are confident to grow in the year. I won't be able to give a number on it.

I can only say that we have been doing well at a certain percentage, and this is what we want to do even going forward. There are many, many things that could go this way, that way, positive and negative.

Very difficult to make any projection. If you ask me, I'm optimistic.

Thank you. That's all from my side.

good evening. Am I audible?

Madam, I'm an individual investor. I just wanted to know as far as the Q1 '27 results are concerned, how does the entire outlook looks the next quarter in comparison to the present quarter?

The outlook is positive.

Okay. Yeah.

Thank you.

Ma'am, actually I wanted if you can give a little more explanation about your core business aspects because I see there's something on the electronic side also. There's a lot of testing and a lot of analytical paper is being discussed.

Could you explain your core business in a little more simpler terms?

We are operating two service segments, okay? One is the contract research and testing.

The other one is contract research and development services for biologics. In the contract research and testing services, we have the CRO services, basically pharmaceutical services right from pre-clinical research to clinical research and cGMP analytical testing.

On the testing side of the business, which we call the TIC portion of the business, we operate food testing services and environmental testing services and electronics testing services. Now these three are for quality and safety.

The electronics we also do EMI/EMC testing.

Okay. How are they related, like electricals and electronics testing and your drug discovery development services?

Actually it's a typical profile if you look at all the international MNCs in this field. The profile is very typical.

Ma'am. Thank you.

Hi. Good evening.

Thanks for taking my question. Ma'am, I just have one question.

In case you find a company with, let's say, complementary skill sets or complementary platform, is there a thought of a potential large acquisition or demerger so that you can increase your offerings to the same set of clients, or like you did in the biologics where you took a call to go on your own and build it organically, is that the motto for, let's say, newer platforms?

In theory, we think the company has reached a size where it can think of inorganic opportunities. Yes, the thought is there.

Okay. Is there something which is actively on the table right now because I'm just coming from the fact that you have a very healthy balance sheet, and there are opportunities to grow in terms of either acquiring or any other such M&A?

No active opportunity on the table at the moment.

Okay. Thank you.

Thank you for the opportunity. Madam, congratulations on decent set of numbers considering the current environment.

I would like to know the total capex that the company has incurred for expanding this facility as well as on biologics segment.

The facilities were created during the last 2 years. We have spent close to 100 crores on creating around 200,000 square feet of lab space in Genome Valley, Hyderabad.

On the biologics, the plan is to spend 35 crores. We have spent around 20 crores.

The plan is to see if there is the need to spend the remainder this year. We think we may spend about 10 crores out of the total 35 crore budget that we have put for this project.

Right. Also if I observe last 5 to 7 years, the fixed asset turns have been around, say, 1 to 1.2x for the company.

Going forward as well, will it remain same? Also with biologics, will the fixed asset turn improve going forward?

Those are the average numbers, and we think these average numbers will continue in the upcoming years also because this is one of the key criteria that even we apply when we are looking at new investments in terms of developing new capabilities.

Okay. Ma'am, I have missed the capex that we have done on electronics and electricals segment if you can provide.

That is about 40 45 crores, I think, 40 crores.

40 crores. Thank you very much, and wish you all the best.

Thank you.

Good evening. Thank you very much.

Madam, last quarter, we highlighted our intent to grow 20% to 25%, correct? Hello?

You're saying we ended the last quarter with 20% to 25% growth?

No, ma'am. In concall, we mentioned you are aspiring for 20% to 25% growth this year, right?

Yes.

Right. You rightly highlighted there are some Middle East issues.

Because of this issue, how much revenue you missed in this quarter?

Your voice is not clear. Can you be a little louder?

Yeah. I'm saying in current concall, you mentioned because of some Middle East crisis, we're not able to book revenues.

How much revenues we missed or lost or maybe forward to next quarter roughly?

I will answer that differently. In our food business, we have 50% exposure to domestic testing, and also the other 50% is exposed to either import samples or export samples of food.

That is our exposure.

That is the food business. Madam, in terms of if I see, basically, let's take a pharma analytical, clinical research, and pre-clinical, electronics, electrical, all are very growing sector.

It means the incremental development if I remove the food and environment testing, how do you see because how much revenues you can see and what percentage of value addition we are doing? Because if I see the production number or maybe export number from electronics, it completely continues to growing up.

It is not reflecting in our kind of business because if you see slide number 25, we mentioned one of the leading labs in South. It means the industry is also growing very similar to our growth or I'm missing something?

Like clinical we are among top three, and pharma analytical customers 90% of India top 20, 40 revenues from. Something like that I'm saying.

Is it I'm missing something here? Because opportunity seems to be very big, and I don't know where we are missing that part, or do you see the pent-up demand will come in next two, three quarters?

See, the markets that you're talking about, they're all growing at a CAGR of anywhere between 8% to 11%. Our business units are growing at almost double that rate, more in fact, in some services.

I don't know why that concern is there. I feel we are doing very well.

We are leader in most of our segments. Then every year we are gaining more and more market share.

Okay? Now coming to electronics industry, this is actually the industry that has the lowest growth rate in India because it is still a sunrise industry.

There's a lot of push from the government. Still, the growth rates are about 4.5%.

Given this also, we had one EMI/EMC chamber when we created these capabilities 4 years ago. We added one more last year.

We made it operational, I think, the last quarter of last year. That itself is an indication that we are also on the right track with respect to our investment because we ran out of capacity in the first 3.5 years itself as per our plan.

I don't see any disconnect with the market and the company's aspirations and performance.

It means let's take in full year 20% to 25% growth is still on track, and what is the miss we see in Q1 is largely due to Middle East crisis, especially in food and environment testing?

Sorry, can you please be a little louder?

Madam, I'm saying, or 20% to 25% growth, we are on track, and in Q1, we missed due to only Middle East crisis, right?

I wouldn't say Q1 we missed. Now, Q4 to Q1 is very challenging to maintain even the sales because Q4 tends to be high seasonally, whether it is food or consumption of the budgets by the Indian companies.

If we are matching Q1 to Q4, I see it as a very positive sign for this year.

Okay. No.

I'm just referring from last year's Q1 to this year Q1, and just I agree it is not a very linear growth, 20% to 25%. It means, since you've given a reason of Middle East crisis, I thought there might be a 5%, 6% of the gap because of this issue.

In remaining quarter, we'll catch up. My understanding is correct?

We missed some business because of the issue. We could have done much better had this issue not been out there.

Okay. Thank you very much.

Hello. Am I audible?

Ma'am, am I audible?

Ma'am, my question is regarding the management bandwidth. Do we have the sufficient bandwidth for the businesses that we are going to pursue in future?

Yes. I say yes because each individual business unit is headed by a business leader with the respective experience and capabilities in those sciences and engineering fields.

There is no deficit of management bandwidth.

Ma'am. Ma'am, any changes in dividend policy in the near future?

I think that will be announced if some change happens. As of now, no.

Okay. Ma'am, a few quarters back, you discussed about the container testing.

You talked about container testing that was quite a high margin business, but Vimta was not doing that.

You mean product containers?

Ma'am, it was regarding some sort of container testing which other companies like Eurofins do.

Maybe you're referring to extractable and leachable?

No, ma'am. It was something regarding food testing of the whole containers, and it was a quite high margin business.

I don't recall, sorry. You'll have to be a little more specific.

Ma'am. I will check.

Thank you, ma'am. Thanks a lot.

Thank you for taking my question once again, ma'am. Ma'am, my question is regarding your genetic testing infrastructure.

I do understand that you already provide the BA and BE studies. Any clients who come to you for genetic testing as part of the same trial, what sort of percentage would you say that you turn away the work or you outsource the work to another lab?

I do know that you do genetic toxicology, but I'm talking about the genome biomarker testing etc. No,

we don't do those tests. Now we had a diagnostic arm of the business which we divested 2 years ago, we don't do that.

Correct. How much of the percentage would you say do you outsource that right currently?

On genetics testing?

Yes, ma'am.

We don't outsource anything. I don't know if there are any projects where we do outsourcing, I'm not aware.

No, I'm just saying if there are any client who comes to you

and

do you turn away that work, or do you outsource that work?

I'm not sure really. No, that's very operational, I wouldn't get into all that.

Got it. Thank you.

All the best.

Thank you. Thanks Systematix for arranging this call, and thanks all investors for taking time this afternoon and asking the questions to us.

Thank you so much. Have a good day ahead.